NEW DELHI: Nepal has given to India fairly explicit proposals settling the nine-month-old trade row; it was officially indicated at the conclusion of the Nepalese foreign minister, S.K. Upadhyay’s visit here.

A lot of suspicion and mistrust was cleared during two days of talks between Upadhyay and his Indian counterpart, inder Kumar Gujral, the officials emphasized.

The talks resulted in greater mutual understanding of each other’s interests and concerns, including purchase of Chinese arms by Nepal in violation of the 1950 treaty of peace and friendship.

Whether there should be a single treaty or two treaties governing trade and transit between the two countries still remained to be settled.

A joint press statement issued here, however, said progress “has now been ‘commenced towards a mutually acceptable and beneficial settlement of all outstanding issues,” More PTI

‘The Nepalese foreign minister handed a letter from king Birendra to prime minister, V P-Singh.

Singh, talking to newsmen on Wednesday, had suggested that Nepal come out with “official proposals” on outstanding bilateral problems,

Singh had said in Parliament last month that Nepal should be conscious of India’s concerns. India, on its part, appreciated the kingdom’s peculiar problems as a landlocked country.

Upadhyay had, in a dinner speech on Wednesday, sought India’s understanding in appreciating the additional problems faced by Nepal in the absence of trade and transit treaties.

Upadhyay stressed that the issues that, had made some negative impact on bilateral ties would be resolved soon in the spirit of friendship and mutuality of interest. “We consider these problems as temporary aberrations in the annals of our cordial relations.” PTI.

Article extracted from this publication >> January 12, 1990