World Tibet Network News Thursday, April 16, 1998

KATHMANDU, April 15 (AFP) - China has decided to grant nearly five million dollars in assistance to Nepal to promote greater trade with its Tibet autonomous region, a visiting senior Chinese trade official said Wednesday.

Liu Shanzai, vice minister of foreign trade and economic cooperation, announced Beijing's decision to grant aid worth 3.77 million dollars to the Nepalese government and 1.2 million dollars to the Nepal-China Export Forum to boost trade.

Liu arrived here on Tuesday at the head of a delegation sent to attend the eighth meeting of Nepal-China Inter-governmental Economic and Trade Committee (IETC).

Finance Secretary Ram Binod Bhattarai briefed the Chinese vice minister and officials on Nepal's economic objectives with an emphasis on reducing poverty.

"We have fixed the target of reducing poverty from the present level of 45 percent to 32.5 percent during the current ninth Five-Year Plan period and to ten percent by the end of the twelfth plan period," Bhattarai said, without elaborating.

During the current financial year, which ends July 16, Nepal has targetted growth at 4.5 percent.

He also described China's aid to Nepal as "noteworthy", particularly its "assistance in construction of Nepalese road networks, establishment of industries, construction of hydropower and irrigation projects, building of the convention centre of international standard and sports complex."

"Economic cooperation, indeed, constituted an important aspect in our bilateral relationship since 1961," Bhattarai said, adding that Nepal would like to see more joint ventures created with Chinese firms.

The Nepalese finance secretary however voiced concern over a faltering economy, saying: "We have been able to maintain comfortable foreign exchange reserves ... but decrease in economic activities has apparently become worrisome for us."

Nepal's foreign exchange reserves were worth 54.37 billion rupees (876.99 million dollars), enough for seven months of imports, officials said.

"The revenue collection is lagging behind the target and ... development expenditure is not keeping its planned momentum while exports have also slowed down."

Liu responded to his Nepalese host, saying that China would welcome more exports from the Himalayan kingdom.

"During 1997, the Nepal-China trade stood at 67.74 million dollars, of which China's export to Nepal totalled 55.8 million dollars and in return Nepal exported goods worth only 11.9 million dollars to China," Liu said.