Chapter 9: Nepal in world politics.

Chapter 9: Nepal in world politics. 

A. Foreign Policy of Nepal

Introduction:

• No country can live independently; every country needs foreign relations for economic, industrial, and technological growth.
• Foreign policy guides relations between sovereign states.
• It protects national interests, security, ideological goals, and economic prosperity.

Objectives of Nepalese Foreign Policy

• Enhance Nepal's dignity internationally.
• Maintain sovereignty, integrity, and independence.

Guiding Principles for Nepalese Foreign Policy (Post-1950)

• Abiding faith in the United Nations and nonalignment.
• Guided by international law and universally recognized norms.
• Value of world peace.
• Basic principles (Panchsheel):
  • Mutual respect for territorial integrity and sovereignty.
  • Non-interference in internal affairs.
  • Respect for mutual equality.
  • Non-aggression and peaceful dispute settlement.
  • Cooperation for mutual benefit.

Foreign Policy Priorities for Nepal (Suggested by Diplomat Jayaraj Acharya)

1. Socio-economic Development: Prevent disintegration by building internal strength.
2. Relations with Immediate Neighbors: Consider geography, history, culture, economy, trade, etc., with India and China.
3. Role in the United Nations: Use UN membership to project Nepal’s image and gain international experience.
4. Relations with Other Nations: Prioritize relationships with regional and global powers like Bangladesh, Pakistan, US, and UK.
5. SAARC and Non-aligned Movement: Enhance economic and security cooperation.

Nepal-China Relations

Introduction

• Long history of Nepal-China relations, strengthened by geography and cultural factors like Buddhism.
• Formal bilateral relations established on 01 August 1955.
• China is now a major economic power.

Key Aspects of Nepal-China Relations

• Economic Assistance: Since 1963, China has helped in roads, hydro projects, infrastructure, health care, and more.
• High-level Visits: Regular exchanges since 1956.
• Border and Religious Ties: 1400 km shared border; China has religious ties with Nepal.

Notable Chinese Support to Nepal

• Transport: Arniko Highway, Kathmandu Ring Road, etc.
• Industries: Bansbari Leather Factory, Hetauda Cotton Mills, etc.
• Health: B.P. Koirala Memorial Cancer Hospital.
• Infrastructure: Birendra International Convention Centre.

History of Nepal-China Relations

• Ancient Ties: Marriage of Ansubarma’s daughter to a Chinese king, artist exchanges.
• Modern Relations: Post-1949 realization of China's importance; 1950-51 Invasion of Tibet; 1960 boundary settlement.
• Neutrality: Maintained during 1962 China-India War.

Nepal's Policy towards China

• Strengthen ties for mutual benefits.
• Firm stance on “One China” policy, recognizing Tibet as part of China.
• Nepal has never voted against China internationally.

China's Interest in Nepal

• Wants Nepal to avoid causing issues with Tibet and India.
• Concern over Tibetan refugees and anti-China activities in Nepal.
• Increased interest in Nepal due to regional dynamics with the US and India.

Major Controversies in Nepal-China Relations

• Mt. Everest Dispute (1960): Resolved by agreeing on territorial division.
• Mustang Incident (1960): Chinese soldiers mistook Nepalese as rebels.
• Khampa Rebellion (1974): US-supported rebellion controlled by Nepal.
• Tibetan Refugees: China concerned over free-Tibet movements and international support.

Remarks on Nepal-China Relations

• Limited trade routes and no special trade/investment treaties.
• Scholars believe Nepal benefits from a stable relationship with China.
• ‘One China’ policy seen as beneficial for Nepal to avoid regional conflict.
• Post-Cold War dynamics: US challenges China, using Tibet as leverage.
• China seeks stability, avoiding confrontation with India despite Nepal's relations.

Nepal – India Relations

Introduction

• No specific start date for Nepal-India relations; traceable back to Buddha's time.
• Relations encompass political, historical, economic, cultural, religious, and social aspects.
• Many Nepalese visit India for employment and education; Nepal depends on India for various goods.
• Formal diplomatic relations established on 13 June 1947.
• India supports Nepal in education, health, infrastructure, ICT, and water projects (e.g., B.P. Koirala Institute of Health Sciences, Bir Hospital Expansion).
• High-level visits enhance political, economic, and cultural exchanges.

History

• India's influence grew post-British Empire, with heightened sensitivity towards Nepal due to communism in China and China's South Asian interests.
• India supported democratic movements in Nepal, opposed Rana regime due to its anti-democratic stance.
• King Tribhuvan aligned with India, but King Mahendra pursued an anti-India policy, fostering ties with China and Pakistan.
• King Mahendra's policies aimed at independent foreign policy; King Birendra faced Indian criticism and trade blockades.
• King Gyanendra and Maoist leader Pushpa Kamal Dahal's policies towards China strained relations with India.

Nepal’s Policy Towards India

• Analysts claim Nepal lacks a clear policy towards India.
• Open borders and cultural ties make the relationship unique.
• Need for a clear policy addressing national interests, India's stance, and mutual benefits.
• Some suggest lingering anti-Indian nationalism influences current policies.

India’s Interest in Nepal

• India's interests include security, regional power status, and concerns over terrorism, arms smuggling, and China's influence.
• India worried about Maoists' impact in Nepal and on India's Maoist conflict.
• Water resources, especially from the Ganga River region, are prioritized.
• India prioritizes security interests and stable governance in Nepal.

Key Controversies and Challenges

• The 1950 Peace and Friendship Treaty faces criticism for putting Nepal under India's defense and foreign policy influence.
• 1965 Arms Assistance Agreement criticized for making India Nepal's principal arms supplier.
• 1996 Integrated Mahakali Treaty criticized for favoring India, with unfulfilled promises for Nepal.
• Concerns over encroachment of Nepali territory by India, particularly in Susta and Kalapani regions.
• Call for revision of treaties and better border management.

Remarks on Nepal-India Relations

• Relations have been strained recently despite acknowledging "special relations."
• Nepalese leaders often seek Indian support for personal political gains, then criticize India when out of power.
• Anti-Indian sentiments used to divert public attention and consolidate power.
• Nepal needs a consistent foreign policy towards India, balancing relations with both India and China.
• Improving trade relations, addressing security concerns, and respecting sovereignty are essential for better ties.
• Both countries benefit from mutual understanding and respect.

Nepal – US Relations

Introduction

• Relations between Nepal and the USA date back to the Rana regime.
• The US is the third country after the UK and India with which Nepal established diplomatic relations.
• Nepal and the US share trade, development, and political interests.

Brief History

• First contact: 10 June 1910, through a letter from the American Consulate in Calcutta.
• Diplomatic relations: Established on 25 April 1947 via Commerce and Friendship Treaty.
• Gorkha soldiers' participation in WWI and WWII fostered US interest.
• Increased US interest during the Cold War, especially after Communist China emerged in 1949.
• 1951: Signed General Agreement for Technical Cooperation, leading to USAID's involvement in Nepal.
• Supported movements against the Rana dictatorship in 1951.
• 1953: Relations upgraded to Ambassadorial level.
• 1955: US supported Nepal's UN membership.
• 1958: Nepal established its Embassy in Washington, D.C.
• 1959: US opened its Embassy in Kathmandu.
• The US supported Nepal during major political changes, including the People's Movement of 1990 and transition to democracy.
• Post-9/11: Nepal allowed US jets to land for refueling during the Afghan war.

Nepal’s Interest in the US

• Guided by Panchsheel and non-alignment principles.
• The US is a major source of foreign aid.
• Significant market for Nepalese products like garments, carpets, and handicrafts.
• Imports machinery, spare parts, and medicines from the US.
• American tourists and students in the US are important for Nepal.

US Support to Nepal

• US assistance in agriculture, communication, health, education, infrastructure.
• Military training and equipment for Nepal Army.
• Subsidized customs duty for Nepalese garments.
• Scholarships for Nepalese students.
• USAID supports various development programs.

US Interest in Nepal

• US interest is moderate, with American multinational companies operating in Nepal.
• During the Cold War, the US aimed to use Nepal to improve relations with China.
• The US perspective in Nepal often aligns with India's.
• US strategy in Asia aims to counter China’s influence.
• The Tibet issue is a strategic tool for the US against China.
• The US invests in Nepal to contain China and support Madhesi and ethnic leaders.

Key Controversies

• Vietnam War protests in Nepal.
• US support for the Khampa Rebellion against China in 1974.
• Nepal's commitment to ‘One-China’ policy and handling of Tibetan refugees.
• US pressure on Nepal regarding Tibetan refugees.
• Maoists were labeled as terrorists by the US until September 2012.

Challenges for Future

• Ensuring ethnic-based federal structure influenced by US strategy.
• Balancing relations between China, India, and the US amidst their triangular rivalry and conflict.

Nepal – Russia Relations

Introduction

• Formal diplomatic relations established on July 20, 1956, between Nepal and the then USSR, now succeeded by Russia.
• Celebrated 55th diplomatic anniversary in 2011.
• Both countries maintain residential diplomatic presence in each other's capitals.

Brief History

• First contact in the 17th century when Tibet was under Russian influence.
• Diplomatic relations formalized after a conference in April 1955.
• King Mahendra and Queen Ratna visited the USSR in 1958.
• Mutual goodwill, understanding, and friendship characterize Nepal-Russia relations.
• Nepal recognized Russia as a sovereign state in 1991 after the USSR's collapse.

Nepal’s Interest in Russia

• Russian assistance in infrastructure, social sectors, and education.
• Numerous Nepalese were educated in the former Soviet Union.
• Imports petroleum products, machinery, vehicles, and arms from Russia.
• Exports include hand-knotted carpets, herbs, medicinal plants, and agricultural products.
• Potential for collaboration in hydropower, tourism, and industrial ventures.

Russia’s Interest in Nepal

• Strategic importance during the Cold War, aiming to counter US and Chinese influence.
• Economic aid extended to Nepal during the Cold War.
• Post-Cold War maintains symbolic diplomatic presence with commercial considerations.
• Interest in investing in energy, mining, education, railways, and hydropower in Nepal.

Key Controversies and Challenges

• Historical hostilities before 1949.
• Soviet veto delayed Nepal's entry into the UN.
• Soviet policy influenced by friendship with India, impacting relations with Nepal.
• Balance of trade unfavorable to Nepal.
• Limited bilateral trade and investment.
• Constraints on tourism due to lack of information, visa system, and language barriers.

Nepal – EU Relations

Introduction

• The European Union (EU) is an economic and political union of 28 member states in Europe.
• Originated from the European Coal and Steel Community (ECSC) and the European Economic Community (EEC) in the 1950s, officially becoming the EU with the Maastricht Treaty in 1993.
• Nepal established diplomatic ties with the EU in 1975, leading to the opening of the EU Technical Office in Kathmandu in 1992.

Cooperation

• Nepal-EU Cooperation Agreement since June 1996.
• Regular Nepal-EU Joint Commission meetings, latest held in July 2012 discussing political situation, peacebuilding, and strengthening ties.
• Memorandum of Understanding on Multi-annual Indicative Program (MIP) 2011-2013 focuses on poverty reduction, education, stability, and trade.
• EU partners with SAARC and ICIMOD, obtaining observer status in SAARC since 2007.

Trade and Economic Development

• The EU accounts for 37% of Nepal's total overseas exports, a significant trading partner.
• The EU supports various development programs in Nepal including poverty reduction, rural development, education, and environmental conservation.
• The European Commission contributes significantly to humanitarian aid, disaster management, and mitigation projects in Nepal.

Key Initiatives

• Negotiations for the Tanahun Hydroelectricity Project initiated with partial loan funding from the European Investment Bank.
• EU major sponsor of UNHCR program in Bhutanese Refugee camps, providing food aid, assistance for resettlement, and early repatriation.
• Significant donor partner of Nepal Peace Trust Fund.

B. Nepal’s Peace Zone Proposal: and why the concept was dropped informally. 

Background:

• Proposed by King Birendra to ensure Nepal’s security amidst regional tensions.
• Aimed to maintain Nepal’s sovereignty and territorial integrity.
• Suggested at the Non-Aligned Movement summit in 1973 and formally proposed in 1975.

Definition of Zone of Peace:

• Nepal to adhere to peace, nonalignment, and friendly relations with all nations.
• Commitment to peaceful dispute resolution, non-interference in other states, and no military alliances or foreign military bases.

Causes for Proposition:

• External Factors: Response to India-China border war, India’s growing regional dominance, and Indo-Soviet Treaty.
• Internal Factors: Concerns about Nepali Congress activities and Sikkim’s democratic movement.

Legal Aspects:

• Proposal lacked clarity on legal enforcement, remaining a philosophical concept.

Reactions:

• 116 countries endorsed the proposal, but India and USSR declined.
• India saw it as unnecessary due to the 1950 Peace and Friendship Treaty and concerns over security.
• China supported it to counter Indian influence in Nepal.

Appraisal:

• Seen as redundant due to existing principles of peaceful coexistence.
• Criticized by India for potentially perpetuating the Panchayat system.
• Lack of clarity on enforcement mechanisms raised questions about effectiveness.

Future Perspectives:

• Some analysts see the Peace Zone concept as still relevant for Nepal’s security amidst regional power struggles.
• Need for Nepal to balance relations between US, China, and India while ensuring independence and security.

C. Nepal's Relations within SAARC:

Afghanistan:

• Nepal and Afghanistan established diplomatic relations in July 1961.
• Both countries share warm relations and face similar challenges as landlocked nations.
• Trade between them is limited, but there's potential for growth if they can use a land route via Pakistan.
• Many Nepalese work in construction in Afghanistan.

Pakistan:

• Nepal and Pakistan have had diplomatic ties since March 1960.
• Their relations have strengthened with the establishment of residential embassies and consulates.
• They cooperate closely in international forums.
• Economic relations are increasing, with existing trade agreements in place.

Sri Lanka:

• Diplomatic relations between Nepal and Sri Lanka began in July 1957.
• They have good relations, cooperation, and cultural exchanges.
• Although they have a trade agreement, trade between them isn't as high as desired.
• They have joint ventures in banking, insurance, and tourism.

Bhutan:

• Nepal and Bhutan established diplomatic ties in June 1983.
• They have cultural and trade connections, with joint trade agreements.
• An air service agreement exists, but the issue of Bhutanese refugees remains unresolved.

Bangladesh:

• Nepal and Bangladesh have had diplomatic relations since April 1972.
• They cooperate mutually, with trade agreements in place.
• Nepal has access to Bangladesh's port facilities, promoting economic cooperation.
• Scholarships and educational cooperation are also part of their relations.

Maldives:

• Nepal and Maldives established diplomatic relations in August 1980.
• They cooperate in tourism, trade, and labor.
• There's a proposal for a tourism cooperation agreement.
• Nepalese workers are employed in Maldives, and a labor agreement is planned.

D. Formation of SAARC, Role played by Nepal in SAARC to make it a viable organization: 

Background:

• SAARC, formed in December 1985, aims to promote welfare, economic growth, and cooperation in South Asia.
• Idea initially raised in November 1980; King Birendra of Nepal was among its proponents.
• Bangladesh proposed it, initially met with skepticism from India and Pakistan due to security concerns.

Establishment:

• Foreign secretaries of seven founding countries met in 1981, leading to the adoption of the Declaration on South Asian Regional Cooperation (SARC).
• First summit was held in Dhaka in 1985; Nepal's King Birendra represented Nepal.
• SAARC Charter formally adopted, emphasizing principles of mutual respect, non-interference, and mutual benefit.

Factors Influencing Establishment:

• Success of other regional organizations.
• Need for economic cooperation amidst global protectionist policies.
• Concerns over dominance and influence, particularly vis-a-vis India.

Objectives of SAARC:

• Welfare promotion, economic growth, and cultural development.
• Strengthening collective self-reliance and mutual trust.
• Cooperation in various fields and collaboration with other international organizations.

Nepal's Role:

• King Birendra advocated for regional cooperation in 1977, highlighting the need to share water resources.
• Nepali artist designed the SAARC logo, symbolizing friendship and peace.
• Nepal has hosted the SAARC Secretariat since its establishment in 1987.
• Hosted three SAARC Summits and several other SAARC meetings.
• Convenes the Independent South Asian Commission on Poverty Alleviation (ISACPA).
• Hosts two SAARC Regional Centers: Tuberculosis Centre and Information Centre, demonstrating commitment to SAARC initiatives.

                                                      Prepared and edited by Manish Rajak & Madhu Dahal