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Nepal-Bhutan Relations
Diplomatic relations between Nepal and Bhutan were established in June 1983. Nepal and Bhutan have concurrently accredited their resident ambassadors to India to each other's country as well. Both the countries are members of the United Nations and the founding members of SAARC and have also joined BIMSTEC as new members since 2004. Both the countries are landlocked and have close cultural and social linkages with each other.
Bhutan is a multi-cultural and multi-ethnic country. Sarchops, Ngalumgs and Lhostsampas are the three main ethnic groups. Bhutan has a significant number of people of Nepalese origin, particularly in the southern part of the country. The Nepalese of southern Bhutan are called Lhotshampas.
Bilateral Visits
Late King Birendra visited Bhutan on October 5-6, 1988 for the consultation of SAARC Meeting.
His Majesty King Jigme Singye Wangchuck of Bhutan had visited Kathmandu to attend the Third SAARC Summit in November 1987 and Bhutanese Prime Minister visited Nepal to attend the 11th SAARC Summit in January 2002. His Majesty Wangchuk had also taken the opportunity to visit the Halesi Mahadev in Khotang in 1987. Other bilateral visits have mostly been at the ministerial levels. A Ministerial Joint Committee formed in 1993 (initially at the Home Ministers' level, and currently at the Foreign Ministers' level) has been meeting periodically with a view to resolving the problem of the Bhutanese refugees living in camps in Nepal.
Her Majesty Queen Ashi Tshering Pem Wangchuck of Bhutan visited Nepal on June 23-30, 2003.
Trade and Economic Relations
Nepal and Bhutan both are predominantly agricultural countries. However, there exits scope for increasing bilateral trade, cultural exchanges, and cooperation in the field of tourism. The Druk Air of Bhutan operates scheduled flights twice a week between Paro and Kathmandu. A Nepalese delegation led by Mr. Lava Kumar Devkota, the then Secretary, Ministry of Culture, Tourism and Civil Aviation visited Bhutan from February 2 to February 4, 2004. During the visit, an Air Service Agreement was concluded between the two Governments. The agreement increases the flight numbers up to seven flights a week between Paro and Kathmandu. The agreement also has increased the beyond points (Gaya and Bombay) for Druk Air.
A delegation of FNCCI visited Nepal in March last year. An MOU has also been signed between FNCCI and Bhutan Chamber of Commerce and Industry to promote the development of trade and economic relations between the two countries.
Bhutanese Refugees
The issue of Bhutanese refugees has remained a challenge for the cordial and friendly relations traditionally subsisting between the two countries. Since 1990, the Lhotshampas have left Bhutan in a massive number and sought asylum in eastern Nepal. At present, there are about 110 thousand Bhutanese refugees living in 7 camps in Jhapa and Morang districts of Nepal.
The Nepal-Bhutan Ministerial Joint Committee (MJC) has so far held 15 meetings with the view to resolving this protracted problem. As agreed by the MJC, the Joint Verification Team (JVT) has completed the verification and categorization work of the people in Khudunabari camp. The 13th MJC meeting held in Thimphu from March 24 to 26, 2003 reviewed the work of the JVT on the categorization of people in the Khudunabari camp. During the 14th MJC held in Kathmandu from May 19 to 22, 2003, the two sides approved categorization of the refugees as per the report of the JVT. In the 15th MJC meeting held in Thimphu on October 20-23, 2003, the two sides agreed to repatriate the refugees falling under categories 1, 2 and 4 in Khudunabari camp. The MJC also entrusted the Joint Verification Team (JVT) with the task of reviewing the appeals submitted by those falling under category 3. The meeting also agreed to take up Sanischare camp for verification of categorization with a view to expediting the resolution of the Bhutanese refugee issue. An unfortunate incident that erupted at Khudunabari Camp during a briefing programme by the leader of the Bhutanese side of the JVT on December 22, 2003, has currently stalled the joint exercise being undertaken by the two sides as per the mandate given by the 15th MJC.
Nepal believes that this incident should not have serious implication in the overall progress of the bilateral efforts. Government of Nepal has assured full security to the resumption of the work at the earliest.
During the bilateral meeting between Prime Minister Surya Bahadur Thapa and Prime Minister Lyonpo Jigmi Y. Thinley of Bhutan on the sidelines of the 12th SAARC Summit in Islamabad on 4-6 January 2004, the two leaders agreed to resume the implementation of the outcome of Fifteenth Ministerial Joint Committee Meeting at an early date for finding a lasting solution of the problem.
Latest Status
On 07 September 2005, Bhutanese Foreign Minister H.E. Lynpo Khandu Wangchuk called then Foreign Minister of Nepal Ramesh Nath Pandey on telephone and said that he is prepared to work with the latter in seeking amicable solution to the refugee problem. On his part, Nepalese Foreign Minister stressed the need to immediately reactivate the stalled bilateral process by honoring the agreements and understanding reached earlier in order to seek a durable solution to the problem. Minister Pandey also met with his Bhutanese counterpart on the 13th and 16th of September 2005 on the sidelines of the High Level Plenary Meeting of the 60th UN General Assembly in New York in connection with resolving the stalemate of the bilateral process. They also had talks on the sidelines of the 13th SAARC Summit in Dhaka, on November 10, 2005 on matters relating to the Bhutanese refugees.
In a briefing to the diplomatic communities on May 19, 2006, Hon'ble Deputy Prime Minister and the Minister for Foreign Affairs K.P. Sharma Oli stated that Nepal seeks lasting solution to the problem of Bhutanese refugees and asked the Bhutanese government to shows its sincerity.
South Asia Division
Ministry of Foreign Affairs
Kathmandu
May 2006
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