China pledges to increase aid to Nepal

Nepal and China have inked agreement on economic cooperation that pledges to increase Chinese assistance to Nepal.

The agreement was reached in a meeting held between the visiting Nepali Prime Minister Madhav Kumar Nepal and his Chinese Counterpart Wen Jiabao in the Great Hall of the People in downtown Beijing on Tuesday.

As per the agreement on economic cooperation, China will increase its annual financial assistance to her southern neighbor from 100 million Yuan to 150 million Yuan (approximately Rs 1.5 billion). China will also take measures to promote export of Nepali products to China and encourage Chinese firms to participate in Nepal´s infrastructure construction.

Nepal had sought Chinese assistance in various four areas including infrastructure development, hydropower, tourism and agro-based industries. China agreed to provide training to human resources and transfer technology for the development of Nepal´s agriculture.

According to a joint statement issued on Wednesday, China offered tariff reductions, training of agricultural experts and other assistance and also agreed to improve land and aviation links, and to exchange expertise in poverty relief.

"The Chinese side will provide necessary support and assistance to the Nepalese side in hydropower construction, infrastructure development, health, education, human resources development and other fields," the statement said.

China is learnt have positively responded to Nepal's requests for zero tariff on the export of 497 goods from Nepal
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During the meeting, Prime MInister Nepal had reiterated that Nepal would adhere to the "one-China policy and believe Taiwan and Tibet are inalienable parts of the Chinese territory". He assured Wen that Nepal would never allow anti-China activities in Nepal´s soil.

Prime Minister Nepal is due to return home on December 31.

This is the first visit to China by Prime Minister Nepal after he assumed the top post in May, 2009.

- Asian Tribune -