Published by: World Tibet Network News, Wednesday, Apr 17, 1996

KATHMANDU, April 16 (Reuter) - Nepali Prime Minister Sher Bahadur Deuba left on Tuesday for Bangkok en route to Beijing for an official visit to China, officials said.

"It is a goodwill visit," Deuba told a news conference before leaving. "Relations (between Nepal and China) are problem-free." The prime minister is scheduled to arrive in Beijing on Wednesday evening after time in transit in Bangkok.

Officials said Deuba would hold talks with Chinese Premier Li Peng and President Jiang Zemin, during which Nepal would seek investment from its neighbour.

Nepal wants to develop its construction materials industry for export to Tibet, part of its efforts to trim a $53.85 million trade deficit with China.

Deuba is also carrying a proposal for Chinese aid to extend a road in western Nepal to Mustang town, which lies on the Nepal-Tibet border.

China last year gave Nepal a $8.5 million grant to build a road maintenance project and supply equipment to a cancer hospital.