Hong Kong Standard, December 4, 1996

KATHMANDU: Chinese President Jiang Zemin arrived in Nepal on Wednesday for a two-day state visit at the end of a South Asian tour which took him to India and Pakistan.

"The purpose of my visit to Nepal is to enhance friendship, deepen understanding and broaden cooperation which, I believe, will be achieved through the concerted efforts of both sides," Mr Jiang said in a written statement after landing in Kathmandu.

Mr Jiang, the first Chinese president to visit the Himalayan kingdom in 12 years, was welcomed at the airport by King Birendra, the world's only Hindu monarch.

The communist leader, who arrived from Pakistan, was given a 21-gun salute and, in a traditional welcome gesture, received bouquets of flowers from "pancha kanyas", or five young virgins. He was led along a red carpet to a canopy where he received a guard of honour.

Mr Jiang, travelling with King Birendra in a black limousine, rode towards the Nepali capital under welcome arches flanked by water-filled jars considered auspicious by Hindus.

Thousands of people lined the route waving Chinese and Nepali flags as the motorcade sped to City Hall where he received ceremonial keys to Kathmandu.

Mr Jiang's visit has drawn keen attention in Nepal, which is sandwiched between China to the north and India to the south, and which is celebrating King Birendra's 25 years on the throne.

Officials said the two nations were expected to sign an economic co-operation agreement.

In the 12 months to mid-July 1995, Nepal exported US$4.7 million worth of goods to China and imported US$57.6 million worth. The US$52.9 million trade shortfall was 21 per cent greater than during the previous 12-month period.

Earlier on Wednesday, Mr Jiang was quoted by Nepal's official news agency as urging Nepal to produce more marketable goods for export to Tibet as a means of trimming the trade imbalance.

Nepal, often described as a yam between two boulders, has strived to balance ties with its giant neighbours.

Kathmandu recognises China's sovereignty over Tibet and bows to Beijing's sensitivities over Taiwan.

Mr Jiang said in his arrival statement that the development of friendly ties between China and Nepal served "peace, stability and prosperity of the region, Asia and the world at large".

Security was tightened in Kathmandu to avoid possible demonstrations by Tibetan exiles, who staged protests while Mr Jiang was in India last week.