World Tibet Network News Friday, April 17, 1998

KATHMANDU, April 16 (AFP) - China's vice minister of foreign trade and economic cooperation, Liu Shanzai, heading an inter-governmental trade team, called on Nepalese Prime Minister Girija Prasad Koirala, officials said.

The Chinese vice minister said Beijing would grant 5.1 million dollars to help develop Nepal's industrial sector, a Finance Ministry official said.

He also told Koirala of China's willingness to extend economic and technical cooperation to Nepal and its people and announced plans to extend a loan assistance to Nepalese entrepreneurs to set up industries which produce consumer goods to export to Tibet and other parts of China, they said.

Liu however did not provide details on the amount of funding for the loans, which would have four to five percent interest over eight to ten years.

Finance Minister Ram Sharan Mahat meanwhile requested that China permit Nepalese helicopters to fly over to Tibet from the far north-western Nepalese district of Humla to increase the volume of trade and develop tourism between the two countries.

He also emphasized the need to build another road linking Tibet and Nepal, besides the existing 114-kilometre (71-mile) Kodari Highway.

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 11.9 million dollars to China.