Nepal

Compiled from the October 2006 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Kingdom of Nepal

PROFILE

PEOPLE

HISTORY

GOVERNMENT AND POLITICAL CONDITIONS

ECONOMY

DEFENSE

FOREIGN RELATIONS

U.S.-NEPAL RELATIONS

TRAVEL

PROFILE

Geography

Area: 147,181 sq. km. (56,136 sq. mi.), about the size and shape of Tennessee, bordering China and India. Cities: Capital—Kathmandu municipality (5 districts) (pop. 1.5 million). Other cities—Biratnagar, Patan, Pokhara, Birganj, Dharan, Nepalganj.

Terrain: Flat and fertile in the southern Terai region; terraced cultivation and swiftly flowing mountain rivers in the central hills; and the high Himalayas in the north. Eight of the world’s ten highest peaks are in Nepal. Kathmandu, the capital, is in a broad valley at 1,310 meters (4,300 ft.) elevation.

Climate: Subtropical in the south to cool summers and severe winters in the northern mountains. The monsoon season is from June through September, during which showers occur almost every day, bringing 75 to 150 centimeters (30-60 in.) of rain.

Time zone: Nepal is 10 hours and 45 minutes ahead of Eastern Standard Time and does not observe daylight saving time.

People

Nationality: Noun—Nepali (sing.) or Nepalese (plural). Adjective—Nepalese or Nepali.

Population: (October 15, 2005 census update by UNFPA) 27.1 million.

Annual growth rate: 2.25%.

Population breakdown/distribution: Rural (85.8%); female (50.1%); in the southern Terai region (49.1%); in the hills (49.1%); in the mountains (7%).

Ethnic groups: (caste and ethnicity are often used interchangeably) Brahman, Chetri, Newar, Gurung, Magar, Tamang, Rai, Limbu, Sherpa, Tharu, and others.

Religions: Hinduism (80.6%), Buddhism (10.7%), Islam (4.2%), and others (4.2%).

Languages: Nepali and more than 12 others.

Education: Years compulsory—0. Attendance—primary 80.4%, secondary 20%. Literacy—53.7% (65.1% male, 42.5% female).

Health: Infant mortality rate—61/1,000 (in 2005). Life expectancy—61.8 years (male), 62.5 years (female).

Work force: Agriculture—85%; industry—3%; services—11%; other—1%.

Government

Type: Constitutional monarchy.

Constitution: November 9, 1990.

Government branches: Executive—prime minister (head of government), king (head of state). Legislative—Parliament consisting of House of Representatives (205-member lower house) and National Assembly (60-member upper house). Judicial—Supreme Court, 16 appellate courts, 75 district courts.

Political subdivisions: 5 development regions, 14 zones, and 75 districts. 75 district development committees, 58 municipalities, 3,913 village development committees, and 36,023 ward committees.

Political parties: (lower house representation) Nepali Congress Party, Nepali Congress-Democratic Party, Communist Party of Nepal/United Marxist-Leninist, National Democratic Party (RPP), Nepal Goodwill Party (NSP), National People’s Front, and others.

Elections: No national elections since 1999.

Suffrage: Universal over 18. Defense/police: (2005) $265 million.

National Day: Democracy Day, Falgun 7 (mid-February). The King’s birthday July 7.

Economy

GDP: (2004/05) $7.37 billion.

Annual growth rate of real GDP: 2.04% in FY 2004/05.

Per capita income: (Gross National Product) $300 in FY 2004/05.

Avg. inflation rate: (Consumer Price Index) 7.8% in Oct. 2005.

Natural resources: Water, hydro-power, scenic beauty, limited but fertile agricultural land, timber.

Agriculture: (39.2% of GDP) Products—rice, wheat, maize, sugarcane, oilseed, jute, millet, potatoes. Cultivated land—25%.

Industry: (11% of GDP) Types—carpets, pashmina, garments, cement, cigarettes, bricks, sugar, soap, matches, jute, hydroelectric power.

Trade: (2004/05) Exports—$821.84 million: carpets, pashmina, garments. Major markets—Germany and the U.S. Imports—$2.00 billion: manufactured goods. Major supplier—India.

Central gov. budget (FY 2005/06) $1.79 billion; military allocation $153.73 million.

Exchange rate: (July 16, 2005) 70.9 Nepalese rupees=U.S. $1.00.

Fiscal year: July 16-July 15.

PEOPLE

Perched on the southern slopes of the Himalayan Mountains, the Kingdom of Nepal is as ethnically diverse as its terrain of fertile plains, broad valleys, and the highest mountain peaks in the world. The Nepalese are descendants of three major migrations from India, Tibet, and central Asia.

Among the earliest inhabitants were the Newars of the Kathmandu Valley and aboriginal Tharus in the southern Terai region. The ancestors of the Brahman and Chetri caste groups came from India, while other ethnic groups trace their origins to central Asia and Tibet, including the Gurungs and Magars in the west, Rais and Limbus in the east, and Sherpas and Bhotias in the north.

In the Terai, a part of the Ganges Basin with 20% of Nepal’s land, much of the population is physically and culturally similar to the Indo-Aryan people of northern India. People of Indo-Aryan and Mongoloid stock live in the hill region. The mountainous highlands are sparsely populated. The Kathmandu Valley, in the middle hill region, constitutes a small fraction of the nation’s area but is the most densely populated, with almost 7.4% of the population.

Religion is important in Nepal—The Kathmandu Valley alone has more than 2,700 religious shrines. Nepal is about 81% Hindu. The constitution describes the country as a “Hindu Kingdom,” although it does not establish Hinduism as the state religion. Buddhists account for about 11% of the population. Buddhist and Hindu shrines and festivals are respected and celebrated by all. Nepal also has small Muslim and Christian minorities. Certain animistic practices of old indigenous religions survive.

Nepali is the official language, although a dozen different languages and about 30 major dialects are spoken throughout the country. Derived from Sanskrit, Nepali is related to the Indian language, Hindi, and is spoken by about 90% of the population. Many Nepalese in government and business also speak English.

HISTORY

Early History

Modern Nepal was created in the latter half of the 18th century when Prithvi Narayan Shah, the ruler of the small principality of Gorkha, formed a unified country from a number of independent hill states. The country was frequently called the Gorkha Kingdom, the source of the term “Gurkha” used for Nepali soldiers.

After 1800, the heirs of Prithvi Narayan Shah proved unable to maintain firm political control over Nepal. A period of internal turmoil followed, heightened by Nepal’s defeat in a war with the British from 1814 to 1816. Stability was restored after 1846 when the Rana family gained power, entrenched itself through hereditary prime ministers, and reduced the monarch to a figurehead. The Rana regime, a tightly centralized autocracy, pursued a policy of isolating Nepal from external influences. This policy helped Nepal maintain its national independence during the colonial era, but also impeded the country’s economic development.

In 1950, King Tribhuvan, a direct descendant of Prithvi Narayan Shah, fled his “palace prison” to newly independent India, touching off an armed revolt against the Rana administration. This allowed the return of the Shah family to power and, eventually, the appointment of a non-Rana prime minister. A period of quasi-constitutional rule followed, during which the monarch, assisted by the leaders of fledgling political parties, governed the country. During the 1950s, efforts were made to frame a constitution for Nepal that would establish a representative form of government, based on a British model.

Democracy Develops

In early 1959, King Mahendra issued a new constitution and the first democratic elections for a national assembly were held. The Nepali Congress Party, a moderate socialist group, gained a substantial victory in the election. Its leader, B.P. Koirala, formed a government and served as Prime Minister.

Declaring parliamentary democracy a failure eighteen months later, King Mahendra dismissed the Koirala government and promulgated a new constitution on December 16, 1962. The new constitution established a “partyless” system of panchayats (councils), which King Mahendra considered to be a democratic form of government closer to Nepalese traditions. As a hierarchical structure progressing from village assemblies to a Rastriya Panchayat (National Parliament), the panchayat system enshrined the absolute power of the monarchy and kept the King as head of state with sole authority over all governmental institutions, including the Cabinet (Council of Ministers) and the Parliament.

King Mahendra was succeeded by his 27 year-old son, King Birendra, in 1972. Amid student demonstrations and anti-regime activities in 1979, King Birendra called for a national referendum to decide the nature of Nepal’s government—either the continuation of the panchayat system with democratic reforms or the establishment of a multiparty system. The

referendum was held in May 1980, and the panchayat system won a narrow victory. The King carried out the promised reforms, including selection of the prime minister by the Rastriya Panchayat.

Movement To Restore Democracy

In 1990, the political parties again pressed the King and the government for change. Leftist parties united under a common banner of the United Left Front and joined forces with the Nepali Congress Party to launch strikes and demonstrations in the major cities of Nepal. This “Movement to Restore Democracy” was initially dealt with severely, with more than 50 persons killed by police gunfire and hundreds arrested. In April, the King capitulated. Consequently, he dissolved the panchayat system, lifted the ban on political parties, and released all political prisoners. An interim government was sworn in on April 19, 1990, headed by Krishna Prasad Bhattarai as Prime Minister presiding over a cabinet made up of members of the Nepali Congress Party, the communist parties of Nepal, royal appointees, and independents. The new government drafted and promulgated a new constitution in November 1990, which enshrined fundamental human rights and established Nepal as a parliamentary democracy under a constitutional monarch. International observers characterized the May 1991 elections as free and fair, in which the Nepali Congress Party won 110 seats out of 205 to form the government.

In mid-1994, the Parliament was dissolved due to dissension within the Nepali Congress Party. The subsequent general election, held November 15, 1994, gave no party a majority. The 1994 elections resulted in a Nepali Congress Party defeat and a hung Parliament, with a minority government led by the United Marxist and Leninist Party (UML); this made Nepal the world’s first communist monarchy, with Man Mohan Adhikary as Prime Minister. The next five years saw five successive unstable coalition governments and the beginning of a Maoist insurgency.

Following the May 1999 general elections, the Nepali Congress Party once again headed a majority government after winning 113 out of 205 seats. But the pattern of short-lived governments persisted. There were three Nepali Congress Party Prime Ministers after the 1999 elections: K.P. Bhattarai (5/31/99-3/17/00); G.P. Koirala (3/20/00-7/19/01); and Sher Bahadur Deuba (7/23/01-10/04/02).

On June 1, 2001, Crown Prince Dipendra reportedly shot and killed his father, King Birendra; his mother, Queen Aishwarya; his brother; his sister; his father’s younger brother, Prince Dhirendra; and several aunts; before turning the gun on himself. After his death two days later, the late King’s surviving brother Gyanendra was proclaimed King.

In February 1996, the leaders of the Maoist United People’s Front began a violent insurgency, waged through killings, torture, bombings, kidnappings, extortion, and intimidation against civilians, police, and public officials in more than 50 of the country’s 75 districts. Over 12,000 police, civilians, and insurgents have been killed in the conflict since 1996. The government and Maoists held peace talks in August, September, and November of 2001, but they were unsuccessful, and the Maoists resumed their violent insurgency. Shortly after the 2001 peace talks failed, King Gyanendra declared a state of emergency and the Parliament approved this declaration by a two-thirds vote. On the recommendation of Prime Minister Sher Bahadur Deuba, the King dissolved the House on May 22, 2002.

Struggle for Democracy Continues

In a sudden turn of events on October 4, 2002, King Gyanendra removed Prime Minister Deuba and assumed executive power. The entire Council of Ministers was also dissolved, and the November 13, 2002 elections to the dissolved House of Representatives were called off. After a week-long consultation with the leaders of various political parties, on October 11, 2002, the King appointed Lokendra Bahadur Chand as Prime Minister with a five-point directive that included creating an environment of peace and security as well as holding elections to the local bodies and the House of Representatives.

In a major development after Chand assumed the premiership, the government and Maoists declared a cease-fire on January 29, 2003. This marked the second cease-fire with the Maoists; the first, in 2001, had been broken by the Maoists. The 2003 cease-fire included an agreement to undertake initiatives to resolve the Maoist problem through dialogue and bring the Communist Party of Nepal/Maoist back into mainstream politics. After the announcement of the 2003 cease-fire, the Chand government held two rounds of peace talks with the Maoists, in April and May. But in its effort to end political instability, it failed to secure the support of the leading political parties. In the face of growing pressure from political parties and their mass movement, Chand resigned from his post on May 30, 2003, after only seven months in power.

The King appointed Surya Bahadur Thapa as the new Prime Minister on June 4, 2003, amidst opposition from the major political parties. Another round of peace talks was held in mid-August 2003, but on August 27, 2003 the Maoists broke the second ceasefire. Thapa resigned in May 2004 as a result of political pressures. In June 2004, the King reinstated formerly dismissed Sher Bahadur Deuba as Prime Minister.

Citing a steady deterioration of conditions in the country, King Gyanendra dismissed the Cabinet and constituted a Council of Ministers under his own chairmanship on February 1, 2005. He stated that the Council of Ministers (i.e., Cabinet) would try to reactivate multi-party democracy within three years. The King subsequently declared a state of emergency and suspended almost all fundamental rights for almost three months. His new government was sworn in on February 2, 2005. The Council of Ministers under the King’s chairmanship has been reshuffled twice since then.

In April 2006, a second major people’s movement for the restoration of democracy pressured the King to relinquish power, and on April 24, 2006, King Gyanendra reinstated the 1999 parliament that was dismissed in May 2002. Former Prime Minister Girija Prasad Koirala of the Nepali Congress Party was selected by the opposition seven-party alliance to again lead the government. The Maoists declared a ceasefire on April 26, and the new Koirala government announced its own ceasefire and plans for peace talks with the Maoist insurgents on May 3, 2006.

GOVERNMENT AND POLITICAL CONDITIONS

According to the constitution, Nepal is a constitutional monarchy with a parliamentary form of government that is multiethnic, multilingual, Hindu, and retains the king in the role of head of state. The former “partyless” panchayat system of government was abolished in April 1990 (see “Movement to Restore Democracy.”). Under the constitution, the democratically elected Parliament consists of the House of Representatives (lower house) and the National Assembly (upper house). International observers considered the 1999 parliamentary elections to be generally free and fair. There have not been any parliamentary elections since 1999. King Gyanendra assumed the throne in June 2001, after the late Crown Prince Dipendra killed King Birendra and nine members of the royal family, including himself.

A Maoist insurgency—punctuated by a cease-fire in 2001, one in 2003, another from September 3, 2005 to January 2, 2006, and the latest one from April 26, 2006—has been ongoing since 1996. A nationwide state of emergency was in effect from November 2001 to August 2002 after Maoist insurgents broke a four-month cease-fire with violent attacks. During that time, King Gyanendra, under the constitution’s emergency provisions and on the advice of the Cabinet, suspended several constitutional rights, including freedom of expression, assembly, privacy, and property. In October 2002, the King dismissed Prime Minister Sher Bahadur Deuba after he recommended the dissolution of Parliament but was subsequently unable to hold elections because of the ongoing insurgency. A Cabinet was royally appointed to govern the country until elections could be held at an unspecified future time. On June 4, 2003 King Gyanendra appointed Surya Bahadur Thapa as Prime Minister after Lokendra Bahadur Chand resigned on May 30, 2003. The government and the Maoists declared another cease-fire on January 29, 2003 and held three rounds of talks on April 27, May 9, and August 17 to 19, 2003. The Maoists unilaterally broke the ceasefire on August 27, 2003 and resumed attacks against government, security, and civilian targets.

Prime Minister Thapa resigned in May 2004, and on June 2, 2004, King Gyanendra reinstated formerly dismissed Sher Bahadur Deuba as Prime Minister. In February 2005, the King dismissed Prime Minister Deuba and dissolved the Cabinet. The Maoists announced a three-month unilateral cease-fire on September 3, 2005, which was extended for another month on December 2, 2005. The Maoists ended this third cease-fire, returning to violence on January 2, 2006. After the King announced the reinstatement of parliament on April 24, the Maoists declared a three-month unilateral ceasefire on April 26, which the new Koirala government reciprocated on May 3.

Under the constitution, Nepal’s judiciary is legally separate from the executive and legislative branches, and in practice has increasingly shown the will to be independent of political influence. The judiciary has the right of judicial review under the constitution. The King appoints the Chief Justice and all other judges to the Supreme, Appellate, and District Courts upon the recommendation of the Judicial Council. All lower court decisions, including acquittals, are subject to appeal. The Supreme Court is the court of last appeal. The King may grant pardons and may suspend, commute, or remit any sentence pronounced by any court.

Human Rights

Since political reform began in 1990, some progress has been achieved in the transition to a more open society with greater respect for human rights; however, substantial problems remain. Poorly trained police sometimes use excessive force in quelling violent demonstrations. In addition, there have been reports of torture during detention and widespread reports of custodial abuse. In 2000, the government established the National Human Rights Commission, a government-appointed commission with a mandate to investigate human rights violations. The government is sometimes slow to follow the commission’s recommendations or to enforce accountability for recent and past abuses. The King’s February 2005 dismissal of the government, subsequent imposition of emergency rule and suspension of many civil rights for almost three months—including freedom of expression, assembly, and privacy—was a setback for human rights in Nepal. Censors were reportedly deployed to major newspapers, and many political leaders were kept under house arrest.

Both the Maoists and security personnel have committed numerous human rights violations. The Maoists have used tactics such as kidnapping, torture, bombings, intimidation, killings, and conscription of children. Within the Nepalese security force, violations ranging from disappearances to executions have been recorded. After the royal takeover on February 1, 2005 and subsequent imposition of the state of emergency, the security forces arrested many political leaders, student leaders, journalists, and human rights activists under the Public Security Act of 1989, although all were released by June 2005 when the King ended the state of emergency.

There are three major daily English-language newspapers, “The Kathmandu Post,” “The Himalayan Times” and “The Rising Nepal,” of which the latter and its vernacular sister publication are owned by a government corporation. There are literally hundreds of smaller daily and weekly periodicals that are privately owned and of diverse journalistic quality. Views expressed since the 1990 move to democracy are varied and vigorous. Currently twenty-five radio and three television stations are privately owned and operated, due to liberalization of licensing regulations. Radio Nepal and Nepal Television are government-owned and operated. There are nearly 200 cable television operators nationwide, and satellite dishes to receive television broadcasts abound.

There are some restrictions on freedom of expression. The law strictly forbidding the media to criticize or satirize the King or any member of the royal family is currently being enforced after the King’s February 2005 dissolution of the Cabinet. After the royal takeover on February 1, 2005, the Ministry of Information and Communications issued a notice invoking the National Broadcasting Act of 1992, stating that no media can publish interviews, articles, or news items against the spirit of the royal proclamation of February 1. A second notice invoking the Press and Publications Act of 1991 was issued on February 3 stating that no media can publish news items supporting terrorist and destructive activities.

On October 9, 2005, the government promulgated a new Media Ordinance restricting news reporting by private FM radio stations, prohibiting criticism of the King and royal family, restricting dissemination of news from foreign sources, enabling a government-controlled press council to recommend revoking a journalist’s press credential; and placing new restrictions on cross-media ownership. In the months following the issuance of the ordinance, armed authorities raided private FM radio stations and seized station equipment, although the government has since obeyed a Supreme Court order to return the equipment and allow FM stations to broadcast news. The newly reinstated government led by Prime Minister Koirala announced in May 2006 that all media ordinances passed by the former King-led government would be overturned, and the Supreme Court on May 5, 2006, upheld FM stations’ right to air news. Trafficking in women and child labor remain serious problems. Discrimination against women and lower castes is prevalent.

Principal Government Officials

Last Updated: 7/12/2006

King: GYANENDRA (Bir Bikram Shah Dev)

Prime Minister: Girija Prasad KOIRALA

Dep. Prime Min.: K. P. OLI

Dep. Prime Min.: Amik SHERCHAN

Min. of Agriculture & Cooperatives: Mahanta THAKUR

Min. of Defense: Girija Prasad KOIRALA

Min. of Education & Sports: Mangal Siddhi MANANDHAR

Min. of Environment, Science, & Technology: Man Bahadur BISHWOKARMA

Min. of Finance: Ram Sharan MAHAT

Min. of Foreign Affairs: K. P. OLI

Min. of Forest & Land Conservation: Gopal RAI

Min. of Health & Population: Amik SHERCHAN

Min. of Home: Krishna SITAULA

Min. of Industry, Commerce, & Supplies: Giriraj Mani POKHAREL

Min. of Information & Communications: Dilendra Prasad BADU

Min. of Labor & Transport Management: Ramesh LEKHAK

Min. of Land Reform & Management: Prabhu Narayan CHAUDHARY

Min. of Law, Justice, & Parliamentary Affairs: Narendra Bikram NEMWANG

Min. of Local Development: Rajendra PANDEY

Min. of Physical Planning & Works: Gopal Man SHRESTHA

Min. of Royal Palace Affairs: Girija Prasad KOIRALA

Min. of Tourism, Culture, & Civil Aviation: Pradip GYAWALI

Min. of Water Resources: Gyanendra Bahadur KARAKI

Min. of Women, Children, & Social Welfare: Urmila ARYAL

Governor, Central Bank:

Ambassador to the US:

Permanent Representative to the UN, New York: Madhu Raman ACHARYA

Nepal maintains an embassy in the United States at 2131 Leroy Place, NW, Washington, DC 20008 (tel 202-667-4550; fax: 202-667- 5534). The Nepalese Mission to the United Nations is at 300 E. 46th Street, New York, NY 10017 (tel 212-370-3988/3989).

ECONOMY

Nepal ranks among the world’s poorest countries with a per capita income of around $300. Based on national calorie/GNP criteria, an estimated 31% of the population is below the poverty line. An isolated, agrarian society until the mid-20th century, Nepal entered the modern era in 1951 without schools, hospitals, roads, telecommunications, electric power, industry, or a civil service. The country has, however, made progress toward sustainable economic growth since the 1950s and is committed to a program of economic liberalization.

Nepal launched its tenth five-year economic development plan in 2002; its currency has been made convertible; and fourteen state enterprises have been privatized, seven liquidated and two dissolved. Foreign aid accounts for more than half of the development budget. The Government of Nepal has shown an increasing commitment to fiscal transparency, good governance, and accountability. Also in 2002, the government began to prioritize development projects and eliminate wasteful spending. In consultation with civil society and donors, the government cut 160 development projects that were driven by political patronage.

Agriculture remains Nepal’s principal economic activity, employing over 76% of the population and providing 39% of GDP. Only about 25% of the total area is cultivable; another 33% is forested; most of the rest is mountainous. Rice and wheat are the main food crops. The lowland Terai region produces an agricultural surplus, part of which supplies the food-deficient hill areas. Because of Nepal’s dependence on agriculture, the annual monsoon rain, or lack of it, strongly influences economic growth.

Nepal’s exports increased 9.32% in FY 2004/05 compared to an increase of 7.78% in FY 2003/04. Imports grew by 7.08% in FY 2004/05 compared with 5.94% in FY 2003/04. The increase in exports is marginal due to the fact that there has been a significant drop in Nepal’s main export, ready-made textile products. The trade deficit for FY 2003/04 was $1.0 billion, which widened to $1.18 billion in FY 2004/05. Real GDP growth during 1996-2002 averaged less than 5%. Real growth experienced a one-time jump in 1999, rising to 6%, before slipping back below 5%. In 2002, the GDP recorded a negative growth rate of 0.33%, largely because of the Maoist insurgency. GDP grew 3.1% in 2003 and 3.26% in 2004, and again slipped to 2.04% in 2005, according to Nepal Rastra Bank (Nepal’s Central Bank).

Despite its growing trade deficit, Nepal traditionally has a balance of payments (BOP) surplus due to money sent home from Nepalis working abroad. In FY 2004/05, however, Nepal recorded a much lower balance of payments surplus of $80 million, as compared to $217.7 in FY 2003/04. The lower BOP surplus in FY 2004/05 is mainly attributable to the lower inflow of net government loans. The decline is primarily in the capital account, due primarily to a slow down in development activities funded by foreign grants and loans. Nepal receives substantial amounts of external assistance from India, the United Kingdom, the United States, Japan, Germany, and the Scandinavian countries. Several multilateral organizations—such as the World Bank, the Asian Development Bank, and the UN Development Program—also provide assistance. Such assistance has decreased substantially in FY 2004/05 after the royal takeover of February 1, 2005 and also because the ongoing Maoist conflict has seriously undermined development activities throughout most of Nepal. On April 23, 2004 Nepal became the 147th member of the World Trade Organization (WTO).

With eight of the world’s ten highest mountain peaks—including Mt. Everest at 8,848 m (29,000 ft)—Nepal is a tourist destination for hikers and mountain climbers. Yet a worsening internal security situation and a global economic slowdown threaten the tourism industry. Figures from the Nepal Tourism Board showed a 12.8% increase in arrivals in 2004, but these are well below numbers during 1999, the peak tourism year. Recent tourist arrivals, during the Maoist cease-fire, show a recovery from the massive decline experienced during the first five months of 2005; however, 2005 annual arrivals fell 3.9% short of total arrivals in 2004. The fragile security situation, particularly after the Maoists ended their unilateral cease-fire on January 2, 2006, is expected to alter the trend of growth in tourist arrivals witnessed during recent months.

Swift rivers flowing south through the Himalayas have massive hydroelectric potential to service domestic needs and growing demand from India. Only about 1% of Nepal’s hydroelectric potential is currently tapped. Several hydroelectric projects, at Kulekhani and Marsyangdi, were completed in the early to late 1980s. In the early 1990s, one large public-sector project, the Kali Gandaki A (144 megawatts—MW), and a number of private projects were planned; some have been completed. Kali Gandaki A started commercial operation in August 2002. The most significant privately financed hydro-electric projects currently in operation are the Khimti Khola (60 MW) and Bhote Koshi (36 MW) projects.

The environmental impact of Nepal’s hydroelectric projects has been limited by the fact that most are “run-of-river,” with only one storage project undertaken to date. The private-sector West Seti (750 MW) storage project is dedicated to electricity exports. An Australian company, which signed a power purchase agreement with the Indian Power Trading Corporation in September 2002, is promoting the project for implementation along build-own-transfer lines. Negotiations with India for a power purchase agreement have been underway for several years, but agreement on pricing and capital financing remains a problem. The Government of Nepal has taken up the issue of project financing for the West Seti project with the EXIM Bank of China. Currently, domestic demand for electricity is increasing at 8%-10% a year.

Population pressure on natural resources is increasing. Overpopulation is already straining the “carrying capacity” of the middle hill areas, particularly the Kathmandu Valley, resulting in the depletion of forest cover for crops, fuel and fodder, and contributing to erosion and flooding. Additionally, water supplies within the Kathmandu Valley are not considered safe for consumption, and disease outbreaks are not uncommon. Although steep mountain terrain makes exploitation difficult, mineral surveys have found small deposits of limestone, magnesite, zinc, copper, iron, mica, lead, and cobalt.

Progress has been achieved in education, health, and infrastructure. A countrywide primary education system is under development, and Tribhuvan University has several campuses. Although eradication efforts continue, malaria has been controlled in the fertile but previously uninhabitable Terai region in the south. Kathmandu is linked to India and nearby hill regions by an expanding highway network.

DEFENSE

Nepal’s military consists of the nearly 90,000-strong Royal Nepalese Army (RNA), which is organized into six divisions (Far Western, Mid Western, Western, Central, Eastern and the Valley Division) with separate Aviation, Parachute and Royal Palace Brigades as well as brigade-sized directorates encompassing air defense, artillery, engineers, logistics and signals which provide general support to the RNA. The King is the Supreme Commander of the RNA while the Prime Minister normally serves as Minister of Defense. General Pyar Jung Thapa is Chief of the Army Staff (COAS).

The RNA has contributed more than 45,000 peacekeepers to twenty-eight peacekeeping missions such as the UN Interim Force in Lebanon (UNIFIL), the UN Protection Force (UNPROFOR) in the Former Yugoslavia, the UN Operational Mission in Somalia II (UNOSOMII), the UN Mission in Haiti (UNMIH), and the UN Mission of Support in East Timor (UNTAET). While concurrently fighting a Maoist insurgency within Nepal, RNA units are also presently serving in the UN Mission in Sierra Leone (UNAMSIL), the UN Mission in the Democratic Republic of the Congo (MONUC), and the UN Mission in Haiti (MINUSTOH), among others. Approximately 3,400 of the world-famous Nepalese Gurkha forces serve in the British Army and 40,000 serve in the Indian Army.

The U.S. Pacific Command (USPACOM) coordinates U.S. military engagement and security assistance with Nepal through the Office of Defense Cooperation. U.S. military assistance to the RNA has consisted of $21.95 million in grant Foreign Military Financing (FMF) since 2002, annual professional and technical training provided under the International Military Education and Training Program (IMET) grant ($650,000 in FY05), additional training provided under the Counter Terrorism (CT) Fellowship ($200,000 for FY04), and approximately $2 million of Enhanced International Peacekeeping Capabilities (EIPC) funding to increase the pool of international peacekeepers and promote interoperability. Many RNA officers attend U.S. military schools, including the U.S. Army War College, the U.S. Army Command and General Staff College (CGSC), and various conferences and seminars such as those provided by the National Defense University (NDU) and the Asia Pacific Center for Strategic Studies (APCSS).

FOREIGN RELATIONS

As a small, landlocked country wedged between two much larger and far stronger powers, Nepal seeks good relations with both India and China. Nepal formally established relations with China in 1956, and since then their bilateral relations have generally been very good. Because of strong cultural, religious, linguistic, and economic ties, Nepal’s association with India traditionally has been close.

India and Nepal restored trade relations in 1990 after a break caused by India’s security concerns over Nepal’s relations with China. A bilateral trade treaty signed in 1991 is renewed every five years. The most recent renewal on March 5, 2002 shall remain in force until March 5, 2007. However, a transit treaty with India, which allows Nepal to trade with other countries through the Calcutta/Haldia ports, expired on January 5, 2006. To allow time for the review of the seven-year-old transit treaty, India extended the treaty for a period of three months, until April 5, 2006.

Nepal has played an active role in the formation of the economic development-oriented South Asian Association for Regional Cooperation (SAARC) and is the site of its secretariat. Nepal is also a signatory of the agreement on South Asian Free Trade Area (SAFTA), which came into force on January 1, 2006, and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation Free Trade Agreement (BIMSTEC-FTA), which will come into force on July 1, 2006. On international issues, Nepal follows a non-aligned policy and often votes with the Non-Aligned Movement in the United Nations. Nepal participates in a number of UN specialized agencies and is a member of the World Trade Organization, World Bank, International Monetary Fund, Colombo Plan, and Asian Development Bank.

U.S.-NEPAL RELATIONS

The United States established official relations with Nepal in 1947 and opened its Kathmandu Embassy in 1959. Relations between the two countries have always been friendly. U.S. policy objectives toward Nepal include supporting democratic institutions and economic liberalization, promoting peace and stability in South Asia, supporting Nepalese independence and territorial integrity, and alleviating poverty.

Since 1951, the United States has provided more than $791 million in bilateral economic assistance to Nepal. In recent years, annual bilateral U.S. economic assistance through the U.S. Agency for International Development (USAID) has averaged $40 million. USAID supports agriculture, health, family planning, environmental protection, democratization, governance, and hydropower development efforts in Nepal. The United States also contributes to international institutions and private voluntary organizations working in Nepal. To date, U.S. contributions to multilateral organizations working in Nepal approach an additional $725 million, including humanitarian assistance. The Peace Corps temporarily suspended its operations in Nepal in 2004 due to increasing security concerns, and officially terminated its Nepal program in 2006.

Principal U.S. Embassy Officials

KATHMANDU (M) Address: Panipokhari, Kathmandu; Phone: (977) 1-441-1179; Fax: (977) 1-441-9963; INMARSAT Tel: 808-559-1213 and 808-659-0920; Workweek: Mon-Fri/0800-1700; Website: www.south-asia.com/usa.

Last Updated: 1/21/2007

TRAVEL

Consular Information Sheet : December 15, 2006

Country Description: Nepal is a developing country with extensive tourist facilities, which vary widely in quality and price. The capital is Kathmandu. Nepal has suffered from political instability during almost 11 years of a violent Maoist insurgency. The Government signed a comprehensive peace agreement on November 21 formally ending the Maoist insurgency, which began in 1996. It remains unclear however whether the Maoists will comply with their commitments to end all violence.

Entry/Exit Requirements: A passport and visa are required. Travelers may obtain visas prior to travel. Visas and information on entry/exit requirements can be obtained from the Embassy of Nepal at 2131 Leroy Place, N.W., Washington, D.C. 20008, telephone (202) 667-4550, or the Consulate General in New York at (212) 370-3988. Active duty U.S. military and Department of Defense contractors must obtain a country clearance for official and unofficial travel to Nepal.

Tourists may also purchase two-month, single-entry visas or two-month, multiple-entry visas upon arrival at Tribhuvan International Airport in Kathmandu and at the following land border points of entry: Kakarvitta, Jhapa District (Eastern Nepal), Birgunj, Parsa District (Central Nepal), Kodari, Sindhupalchowk District (Northern Border), Belahia, Bhairahawa (Rupandehi District, Western Nepal), Jamunaha, Nepal-gunj (Banke District, Mid-Western Nepal), Mohana, Dhangadhi (Kailali District, Far Western Nepal), and Gadda Chauki, Mahendranagar (Kanchanpur District, Far Western Nepal). Upon departure from Tribhuvan International Airport, all foreigners must pay an airport exit tax, regardless of the length of their stay. Tourists may stay in Nepal no longer than 150 days in any given calendar year. Travelers occasionally report immigration difficulties with Chinese authorities when crossing the Nepal-China border overland in either direction. Chinese authorities often require American and other foreign tourists to organize “group” tours through established travel agencies as a pre-requisite for obtaining visas and entry permits into Tibet. U.S. citizens planning to travel to Tibet from Nepal may contact the U.S. Embassy in Kathmandu for current information on the status of the border-crossing points. Travelers may also wish to check with the Embassy of the People’s Republic of China in Nepal for current regulations on entry into Tibet.

Visit the Embassy of Nepal web site at http://www.nepalembassyusa.org/ for the most current visa information. Travelers may also obtain entry and exit information from the Nepalese Department of Immigration website at www.viewnepal.com/immigration/touristvisa.php.

Safety and Security: A Travel Warning remains in effect for Nepal because the Department of State continues to be concerned about the security situation in Nepal. Despite the signing of the November 21 Comprehensive Peace Agreement, Maoist extortion and abductions continue. Maoists are now free to roam about the countryside and cities, sometimes openly bearing their weapons. Travel via road in areas outside of the Kathmandu valley is still dangerous and should be avoided. There have been attacks in the countryside involving foreigners. Trekkers and other individuals who resist Maoist extortion demands have been threatened, sometimes assaulted, and risk being detained. In March 2006, Maoists detained several Polish trekkers after the trekkers refused to pay extortion. Since the ceasefire in April 2006, hotels and businesses frequented by American citizens have been the target of extortion demands and, in some cases, have become the focus of demonstrations. In November 2006, some resident Americans reported that they were told that they would have to house and feed Maoists intending to participate in rallies. In a few cases, local staff of American residents were threatened or beaten when they attempted to resist extortion demands. The discrepancy between Maoist statements on their intentions and their actions, combined with their anti-American rhetoric, make it unclear how they will conduct themselves following the signing of the peace agreement.

While large scale protests such as those that occurred in April 2006 have abated, the potential for large or violent demonstrations remains. During recent demonstrations, protests were violent. Demonstrators burned vehicles, threw rocks at passing motorists and burned tires to block traffic. Given the nature, intensity and unpredictability of disturbances, American citizens are urged to exercise particular caution when demonstrations are announced or reported, avoid areas where demonstrations are occurring or crowds are forming, avoid road travel during these periods and maintain a low profile. Demonstrations can occur with little or no advance notice. American citizens are urged to consult media sources and the Embassy’s website (http://nepal.usembassy.gov) for current security information.

On September 10, 2004, two bombs exploded at the American Center compound in Kathmandu. There were no injuries, but the blasts damaged the facility. Shortly thereafter, on September 14, 2004, the Peace Corps announced the temporary suspension of its operations in Nepal, which continues. Since November 2001, Maoist insurgents have carried out attacks on Nepali security forces, government facilities, and private businesses in most parts of the country. Maoist cadres also have engaged in a variety of guerrilla and terrorist tactics that have victimized and, in many cases, brutalized civilians. The insurgents have detonated explosive devices both within and outside the Kathmandu Valley, causing numerous injuries and some fatalities.

The Department of State has designated the Communist Party of Nepal (Maoist) as a Terrorist Organization under the “Terrorist Exclusion List” of the Immigration and Nationality Act and under Executive Order 13224. These two designations make Maoists excludable from entry into the United States and bar U.S. citizens from transactions such as contribution of funds, goods, or services to, or for the benefit of the Maoists.

Maoists have exhibited a willingness to harass and attack established tourist facilities and infrastructure, and on a number of occasions have burned or bombed tourist resorts after the foreigners staying there were given short notice to evacuate. Maoists have detonated bombs within Kathmandu, including in Thamel, a well-known tourist hub. The random, indiscriminate, and unpredictable nature of these attacks creates the risk of U.S. citizens in Nepal being caught in the wrong place at the wrong time should the violent insurgency resume.

Of Nepal’s 75 Districts, all but one have suffered violence related to the Maoist insurgency. Armed rebel attacks, landmine explosions and vehicle burnings have occurred sporadically on main highways, including the roads linking Kathmandu with the Chinese and Indian borders and with the tourist destinations of Pokhara, Annapurna Conservation Area, and Chitwan National Park. On June 6, 2005 Maoist members detonated a landmine underneath a crowded bus in the Chitwan district, killing or injuring over a hundred people. There have been attacks in the countryside involving foreigners. Maoist extortion of tourists along some popular hiking trails continues. Trekkers and other individuals who resist Maoist extortion demands are threatened, sometimes assaulted and risk being detained. Visitors throughout Nepal, including in Kathmandu, should use metered taxis and avoid public buses.

U.S. citizens are advised to avoid road travel outside the Kathmandu Valley unless they have reliable information that they can proceed safely in specific areas at specific times. Maoist leaders occasionally announce road closures (blockades) in certain districts of Nepal and forcibly block major roads throughout the country, including roads to Tibet, India, Chit-wan, Pokhara, and Jiri. In late Spring 2004, Maoists forcibly blocked all traffic in areas surrounding Pokhara, preventing the departure of tourists for an extended period, and causing some to miss their international flights from Kathmandu. In August and December 2004, the Maoists instituted a virtual blockade around Kathmandu Valley. Other district centers have been blockaded without warning. U.S. citizens are encouraged to contact the U.S. Embassy in Kathmandu for the latest security information, and to travel by air whenever possible.

Maoists have attacked the offices of several non-governmental organizations (NGOs), their local partners, and multinational businesses working in Nepal. NGO workers report widespread harassment and extortion by rebels. Some workers have left their projects in rural areas because of direct threats or concerns about possible rebel violence. A statement by the Maoists on October 21, 2003 threatened attacks against or disruption of NGOs funded by “American imperialism.” In a November 2002 press release, the Maoists claimed responsibility for targeting and murdering two locally-hired U.S. Embassy security guards.

The U.S. Embassy in Kathmandu requires pre-clearance of all travel outside the Kathmandu Valley by U.S. Government employees. U.S. citizens who decide to travel outside the Valley are strongly urged to contact the U.S. Embassy in Kathmandu to discuss and register their planned itinerary and to receive the most recent security information before traveling. Nighttime road travel should be strictly avoided outside the Kathmandu Valley and minimized within Kathmandu.

Visitors in areas on or near the rim of the Kathmandu Valley, such as Shivapuri National Park, should be particularly cautious when traversing military camps or checkpoints and carefully follow the commands of security personnel. Military installations and checkpoints are often protected with defensive explosive devices. Movement in such areas at or after dusk should not be undertaken.

Bandhs (General Strikes): A “bandh” (forced closure of businesses, schools and halting of vehicular traffic) is a longstanding form of political expression in Nepal, which has been frequently used by the Maoists and political parties. Maoist bandhs are enforced through intimidation and violence, with past bandhs resulting in the shutdown of businesses, schools, offices and vehicular traffic. Both within and outside the Kathmandu Valley, the rebels have established a pattern of bombings, targeted assassinations (usually of security personnel), and other acts of intimidation prior to scheduled bandhs. In the lead-up to past bandhs, Maoists have attacked public buses, private vehicles, Nepalese Government vehicles and offices, schools and private businesses with firebombs and explosive devices in an effort to terrorize the population into observing the strike. In anticipation of a bandh planned for May 2004, for example, Maoists detonated several small bombs in the heart of Kathmandu, including one on a public bus, injuring over 20 people and killing one.

Bandhs tend to be unpredictable and take place without any prior notice. Such bandhs typically draw thousands of demonstrators into the streets that may attempt to incite or initiate violence. The demonstrations tend to focus on the central areas of Kathmandu, but bandh-related violent disturbances by protesting parties may occur throughout the Kathmandu Valley, as well as other major towns.

During bandhs, U.S. citizens are urged to pay attention to the volume of traffic on the roads, waiting until a pattern of traffic is well established before undertaking travel, and to maintain a low profile throughout bandh periods. Buses, taxis, and other forms of public transportation may not operate during a bandh. Observance of bandhs, particularly in the transportation sector, may be higher outside the Valley, where a number of private buses and trucks have been stopped, torched, and their drivers beaten. U.S. citizens are strongly urged to avoid road travel outside the Kathmandu Valley at all times and especially during scheduled bandhs. American citizens should exercise additional caution both during the lead-up to and during bandhs. If you are planning air travel to or from Nepal during scheduled bandhs be aware that transportation to and from airports throughout Nepal could be affected. Consult the U.S. Embassy web site at http://nepal.usembassy.gov for up-to-date information on upcoming bandhs as well as the latest security information.

For the latest security information, Americans traveling abroad should regularly monitor the Department’s Internet web site where the current Travel Warnings and Public Announcements, including the Travel Warning for Nepal and the Worldwide Caution Public Announcement, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime: Although the rate of violent crime is low in Kathmandu relative to that in comparably-sized American cities, street crime does occur in Kathmandu as well as in other areas frequented by foreigners. Solo trek-kers have also been robbed by small groups of young men, even on some popular trails. Visitors should avoid walking alone after dark and carrying large sums of cash or wearing expensive jewelry.

Since the Maoists declared a cease-fire in April 2006, the incidences of robbery and home invasion robbery by armed gangs has increased, and in some cases American citizens have been victimized. The U.S. Embassy has received several reports of individuals harassing American women in Kathmandu, and in one case an American woman was assaulted.

Although foreigners are not normally the targets of assaults, in late 2005 two European women were murdered in Nargarjun Forest, a popular tourist destination. The two murders occurred within weeks of each other and both involved women hiking alone. The body and valuables of one woman were recovered and theft did not appear to be the motivation behind the crime. Both crimes remain unsolved and no culprit(s) have been identified. In addition, visitors should consider exchanging money only at banks and hotels and limiting shopping to daylight hours. Valuables should be stored in the hotel safety deposit box and should never be left unattended in hotel rooms. Travelers should be especially alert at or near major tourist sites, where most pick-pocketing occurs. Passports and cash should be carried in a protected neck pouch or money belt—not in a backpack or handbag. There have been several reported incidents where tourists have had their belongings stolen from their rooms while they were asleep. In one case, when police detained two employees of a hotel where this occurred, the American citizen victim was threatened by Maoists. The citizen was told that unless the two employees were released, the citizen would not be allowed to leave Nepal.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: Medical care in Nepal is limited and is generally not up to Western standards. Serious illnesses often require evacuation to the nearest adequate medical facility (in Singapore, Bangkok or New Delhi). Illnesses and injuries suffered while on trek in remote areas often require evacuation by helicopter to Kathmandu. Travelers should be aware that emergency services such as evacuations and rescues from remote areas have been compromised by Maoist attacks on helicopters and airfields and the destruction of regular phone service in most trekking areas. Moreover, emergency helicopter evacuations may be impeded by restrictions limiting helicopter landings generally to locations where an armed police force with a contingent of at least 30 personnel is present. Those trekking in remote areas of Nepal should factor the high costs of a potential helicopter rescue into their financial considerations. Travelers are urged to consider purchasing medical evacuation insurance if they plan to visit remote areas. There is minimal mental-health care available in Nepal. Americans with mental health problems are generally stabilized and transported to the U.S. for care. The Consular Section in Kathmandu can provide a list of available medical facilities to Americans upon request.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention’s hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC’s internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization’s (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith/en/.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Nepal is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

American citizens are strongly warned against undertaking any road travel outside the Kathmandu Valley at night or during or immediately preceding bandhs (general strikes). Additionally, American citizens should be extremely cautious when traveling overland in Nepal, especially by bus. Moreover, Americans should consider avoiding riding motorcycles in Nepal. In 2006, three foreigners were killed after they were hit by trucks while riding motorcycles on the highway. A number of public buses have been held up and/or burned by Maoists. On June 6, 2005 Maoist members detonated a landmine underneath a crowded bus in the Chitwan district, killing or injuring over a hundred people. In addition, there have been attacks in the countryside involving foreigners.

In general, roads are in poor condition and lack basic safety features. Many mountain and hill roads are impassable during monsoon season (June-September) due to landslides, and are hazardous even in the best weather. Avoid travel on night buses; fatal accidents are frequent. In the Kathmandu Valley, motor vehicles, bicycles, pedestrians and animals, all traveling at different speeds, congest narrow roads. Traffic is poorly regulated, and the volume of vehicles on the roads has been increasing by 15 percent a year. Many drivers are neither properly licensed nor trained. Many vehicles are poorly maintained. Sidewalks and pedestrian crossings are non-existent in most areas, and drivers do not yield the right-of-way to pedestrians. Pedestrians account for over 40% of all traffic fatalities in Nepal.

Visit the website of Nepal’s national tourist office and national authority responsible for road safety at http://www.welcomenepal.com/.

Aviation Safety Oversight: As there is no direct commercial air service between the United States and Nepal, the U.S. Federal Aviation Administration (FAA) has not assessed Nepal’s Civil Aviation Authority for compliance with International Civil Aviation Organization (ICAO) aviation safety standards. For more information, travelers may visit the FAA’s Internet website at http://www.faa.gov.

In 2003, the Civil Aviation Authority of Nepal grounded several domestic airlines for failing to meet minimal aircraft safety equipment requirements.

Special Circumstances: Foreign trekkers and climbers, including a number of American citizens, continue to be robbed, extorted, intimidated and injured by armed Maoists on the trails. Risks of a Maoist encounter are very high on nearly all trekking routes in Nepal, and injuries to foreigners by Maoists for arguing or failing to pay extortion demands have occurred. On some trails, Maoists have announced that U.S. citizens are not welcome and are demanding proof of citizenship from foreigners when extorting money. On a number of occasions, Maoists have forcibly detained Americans, in one case for several days.

While Maoist extortion of trekkers was previously absent above Lukla in the Everest park, Maoist checkpoints where armed Maoists demand payment for “trekking permits” are now a concern. In the Annapurna region, numerous military confrontations between the Maoists and government security forces have occurred on trails to the Annapurna Base Camp and throughout the southern portions of the Annapurna Circuit. Recent reports indicate that Maoists are also stopping trekkers in the upper Annapurna trails as well. In March 2004, there was a large-scale attack in the town of Beni, astride a main trail into the Annapurna trekking area from the southwest. Unexploded Maoist ordnance has been reported along several portions of the Annapurna trails. There are many reports of Maoist extortion, including at gunpoint, and encounters with large groups of armed insurgents in the Annapurna region, especially on the route to the Annapurna Base Camp and on the popular Poon Hill. Moreover, the Maoist insurgents have also forced the closure of Annapurna Conservation Area Project offices and police posts, which have traditionally provided security, information and emergency services for Annapurna trekkers. The Embassy advises against trekking to the Annapurna Base Camp or along the Annapurna Circuit (except between Manang and Jomsom) until Maoist extortion and attacks end.

U.S. citizens should never hike alone or become separated from larger traveling parties while on a trail. Solo trekking has contributed to injuries and deaths, and makes one a more vulnerable target to trail hoodlums as well as rebels. The safest option for all trekkers is to join an organized group and/or use a reputable firm that provides an experienced guide and porters who communicate in both Nepali and English. Also, Americans are urged to refrain from arguing with or “talking back” to Maoists, as any rebel encounter involves a risk of violence. Maoist cadres have pointed weapons at foreigners and/or beaten with sticks those who initially refused to pay or were seen as argumentative.

Maoist destruction of telephone services to many trekking areas complicates efforts to locate U.S. citizens and make arrangements for medical evacuations. U.S. citizens are strongly encouraged to contact the Embassy in Kathmandu for the latest security information and to register their itinerary before undertaking treks outside the Kathmandu Valley. Trekkers are also advised to leave their itinerary with family or friends in the U.S. and to check in at police checkpoints where trekking permits are logged.

Trekking in Nepal involves walking over rugged, steep terrain, where one is exposed to the elements, often at high altitudes. Many popular trekking routes in Nepal cross passes as high as 18,000 feet. The U.S. Embassy in Kathmandu strongly recommends that U.S. citizens exercise extreme caution when trekking at higher altitudes. Only experienced mountain travelers should tackle the Himalayas. Trekkers of all ages, experience, and fitness levels can experience Acute Mountain Sickness (AMS), which can be deadly.

Trekkers should also be alert to the possibility of avalanches and landslides, even when trails are clear. Avalanches at the narrow gorge above Deurali on the route to the Annapurna Base Camp regularly result in the deaths of trekkers and climbers. Avalanches and landslides caused by severe storms have killed many foreign trekkers and their Nepalese guides, and have stranded hundreds of others. Trekking in Upper Mustang requires a special permit from the Government of Nepal at a minimum cost of $700 per person.

Before leaving Kathmandu, trekkers can check with the Himalayan Rescue Association (phone (977) (1) 4440-292/4440-293 or the U.S. Embassy for reliable information about trail conditions and possible hazards in the high country.

Nepal has a controlled, or fixed, currency exchange rate with the Indian Rupee. In order to manage this rate of exchange, the Government of Nepal requires travelers to declare either the import or export of currency. As of this writing, travelers must declare any cash currency carried that exceeds $2,000 in value by filling out a custom’s declaration form. Travelers should ensure that they keep a copy of the declaration form after customs officials have put the endorsement on the form to prevent any problems upon departure. Please note that this requirement is subject to change and travelers should contact the Embassy of Nepal in Washington to obtain the latest information. Consequences for violating this requirement could include seizure of all cash carried, fines, and imprisonment. It is illegal to possess 500 or 1,000 Indian Rupee notes in Nepal.

Nepal is prone to earthquakes, landslides, and flooding. The Government of Nepal’s ability to respond is limited. Nepalese customs authorities may enforce strict regulations concerning importation (even temporary) into or export from Nepal of items such as valuable metals, articles of archeological and religious importance, wildlife and related articles, drugs, arms and ammunition, and communications equipment. It is advisable to contact the Embassy of Nepal in Washington or Nepal’s Consulate General in New York for specific information regarding customs requirements.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country’s laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Nepali laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Nepal are severe, and convicted offenders can expect long jail sentences and heavy fines. Proselytizing is illegal in Nepal and those found guilty could be sentenced from three to six years in prison and deported after they have served their sentence. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children’s Issues: For information on international adoption of children and international parental child abduction, see the Office of Children’s Issues website at http://travel.state.gov/family/family_1732.html.

Registration/Embassy Location: Americans living or traveling in Nepal are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department’s travel registration website so that they can obtain updated information on travel and security within Nepal. Please include the following information under Comments or Purpose of Visit: travel/medevac insurance information; travel or trekking agency contact in Nepal; planned itinerary in Nepal; and traveling companions’ names and nationalities. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency. The U.S. Embassy is located at Pani Pokhari in Kathmandu, telephone (977) (1) 441-1179. The Consular Section is located at the Yak and Yeti Hotel complex on Durbarmarg Street. The section can be reached directly at (977) (1) 444-5577; fax (977) (1) 444-4981 or through the Embassy switchboard.

International Adoption : July 2006

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

U.S. citizens wishing to adopt a child in Nepal must meet both U.S. requirements and the requirements set by the Nepalese government. Procedures for foreign adoptions in Nepal are unpredictable and the Nepalese government requirements are not enforced uniformly. The Nepalese government frequently changes requirements with little notice. Due to the high levels of visa fraud in Nepal, fabricated documents or real documents fraudulently obtained are readily available. As a result, the U.S. Embassy in Kathmandu must carefully investigate all orphan visa cases to determine whether the child meets the definition of an orphan under U.S. immigration law. The need for investigations may result in delays in the visa process and issuing the visa. Cases deemed not clearly approvable by the U.S. Embassy in Kathmandu will be referred to the Department of Homeland Security (DHS) for review.

Under Nepalese law, single mothers or married mothers who have been left by their husbands must meet stringent requirements regarding the relinquishment of their children for adoption. Fathers have twelve years from the child’s birth to claim the child and assert custody rights. Unless a mother identifies the father and he agrees, in writing, to the child’s adoption, the child will not be eligible for adoption. This can result in uncertainties as to a whether a child is actually eligible for adoption and may result in further investigations and delays.

Patterns of Immigration: Please review current reports online at www.travel.state.gov/family.

Adoption Authority: The Ministry of Women, Children and Social Welfare (WCS) is the Nepalese Government office responsible for adoptions in Nepal. Officially, the Ministry has recognized the Nepal Children’s Organization (NCO), also known as Bal Mandir, to process adoptions, although adoptions through other orphanages are possible.

Ministry of Women, Children and Social Welfare
Singha Durbar, Kathmandu
Tel: 977-1-424-1465, 977-1-424-1728
Fax: 977-1-424-1516
Email: [email protected]

Eligibility Requirements for Adoptive Parents: Nepalese law sets out the following age and civil status requirements:

• The age difference between prospective parents and the adoptive child must be at least 30 years;
• The couple must have been married for at least 4 years prior to filing an application and be “infertile;”
• Single women between the age of 35 and 55 may also adopt. Single men may not adopt Nepalese children.

Eligibility for Children to be Adopted: Children (either male or female) under the age of 16 may be adopted. If the prospective parents already have a child or children of their own, Nepalese government regulations state they only adopt a Nepalese child of the opposite sex of their biological child or children. Siblings of the opposite sex can be adopted together if other qualifications are met.

Residency Requirements: There are no residency requirements for adopting an orphan from Nepal.

Time Frame: Most orphanages in Nepal will not assign a child to prospective adoptive parents until there is evidence that the I-600A and fingerprints (evidence of no criminal record) have been approved by DHS (United States Citizenship and Immigration Services, USCIS). See “U.S. Immigration Requirements” section below for details on U.S. immigration requirements. Once the I-600A and fingerprints have been approved by DHS, the U.S. Embassy in Kathmandu will receive a Visas 37 cable from DHS. The Embassy cannot issue the Guarantee Letter until the Visas 37 cable has been received. The process from the approval of the I-600A and the issuance of the Guarantee Letter to the approval of the adoption by the Nepalese government varies in length from six months to two years. Adoptive parents adopting children over the age of three years sometimes find their cases are completed in a shorter time period. The timing is often uneven and inconsistent; changes in the security situation or the government may lead to additional delays. Some adoptions in Nepal may be completed with one trip to Nepal; however, many adoptive parents travel to Nepal twice or more. On the first visit, they meet the child and complete initial paperwork required by the Nepalese government. They then return to Nepal when the adoption is approved by the Nepalese government to file for the immigrant visa.

Adoption Agencies and Attorneys: Most adoptive families work with an adoption agency in the U.S. to adopt from an orphanage in Nepal. Some orphanages have established relationships with specific adoption agencies in the U.S. and work only with those agencies. The U.S. Embassy in Kathmandu encourages all parents to work through a U.S. agency, as the adoption process in Nepal is quite complex. The Nepalese government does not require adoptive parents to work with specific agencies in the U.S. or Nepal. Only designated orphanages in Nepal are approved to process intercountry adoption cases. The U.S. Embassy in Kathmandu does not maintain a list of U.S. agencies or Nepalese orphanages processing intercountry adoption cases in Nepal as these may change frequently and any such list would be very difficult to keep up-to-date.

Adoption Fees: The Ministry of Women, Children and Social Welfare charges a fee of $300 for the adoption of an orphan from Nepal. Orphanages and local facilitators in Nepal often charge additional fees to process the adoption and to care for the child once the child has been assigned to adoptive parents but prior to the Nepalese government approval of the adoption by the Nepalese government. These fees vary widely. Adoptive parents have reported a wide variance in fees (between $3,000 – $17,000) charged by Nepalese orphanages, which are largely unregulated by the Nepalese government. Many parents have reported that orphanages have charged them new and unexpected fees once the parents arrive in Nepal. Prospective parents are advised to obtain detailed receipts for all fees and donations paid to orphanages, either by the parents directly or through their U.S. adoption agencies. The U.S. Embassy requires a copy of receipts and information on fees paid in the U.S. and in Nepal at the time of the immigrant visa interview.

Adoption Procedures: Prospective parents may adopt through Nepal Children’s Organization (Bal Mandir) or through a private agency.

Adoptive parents in Nepal sign many documents in the process of completing an adoption. Many of these documents are in Nepalese, and English translations are not routinely provided. Parents are encouraged to have documents translated before they are signed. Shree Law Book Management Board is the official governmental translation office. The office is located in Babar Mahal, Kathmandu. The U.S. Embassy requires both the original and the official translation of all case documents at the time of the immigrant visa interview.

Nepal Children’s Organization reviews applications and makes determinations if parents are eligible to adopt. The U.S. Embassy has no authority to challenge or change a decision by NCO to deny an application. Denial by NCO does not mean a definitive end to the process; parents may still able to proceed with a private agency.

Adoption Guarantee Letter: The Nepalese government requires that all adoptive parents complete and sign a “Guarantee Letter.” This letter, which is made part of the dossier that is submitted to the WCS serves to assure the Nepalese Government that the adoptive parents have been approved by the U.S. Please review current reports online at travel.state.gov/family for detailed information on preparing the Guarantee Letter.

Next Steps: Once NCO or another private agency has reviewed the case, a committee at the Ministry of Women, Children and Social Welfare reviews each adoption file. If the committee deems that everything is in order, it will recommend the case to the legal section of WCS for further processing. Once the legal section reviews the case and issues a positive recommendation, the Secretary of the WCS issues and signs the final adoption decree in English. Adoptive parents must be physically present in Nepal to take custody of the child once the final adoption is pronounced.

This step in the process varies widely in length. While some cases are processed in as little as three weeks, some take as long as six months, depending on the political situation and the circumstances of an individual case. Further questions about the adoption process on the Nepalese side should be addressed to an attorney licensed in Nepal.

Nepalese Travel Document: Once adoptive parents obtain the adoption decree, they will also need to obtain a travel document for the child through the Nepalese Ministry of Foreign Affairs. Generally, the Nepalese travel document is valid only for oneway travel to the United States and countries en route. Since there is no direct flight to the U.S. from Nepal the U.S. Embassy recommends that adoptive parents confirm with the countries that they will transit what visa requirements, if any, exist for the child. As the child will be traveling back to the U.S. on a Nepalese travel document (not a Nepalese passport), visa requirements may vary from those for U.S. or Nepalese citizens.

Documentary Requirements: If an adoption is processed through a private agency, in addition to the information listed above for NCO adoptions, the parents must also obtain a favorable recommendation from the District Administrative Officer (Chief District Officer) where the child resides; and a death certificates and/or a affidavits of consent and irrevocable release of the child of biological parents for purposes of emigration and adoption. Once a child is identified, the adoption can be handled directly through WCS. Many who choose the private adoption route find it useful to have an adoption lawyer or contact person in Nepal to help navigate the process.

The Nepalese Embassy in Washington, DC:

2131 Leroy Place, N.W.
Washington, DC 20008
Tel. 202-667-4550
[email protected]

Nepalese Consulate General New York:

820 Second Avenue, 17th Floor
New York N.Y.10017
Tel: 212-370-3988, 212-370-3989
Fax: 212-953-2038
Email: [email protected], [email protected]

U.S. Immigration Requirements: Prospective adoptive parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adopting Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at www.travel.state.gov/family.

Additional Information: Specific questions about adoption in Nepal may be addressed to the Consular Section of the U.S. Embassy in Nepal, 977-1-444-5577 or [email protected]. General questions regarding international adoption may be addressed to the Office of Children’s Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-407-4747.

Travel Warning : December 8, 2006

This Travel Warning provides updated information on the security situation in Nepal. The Department of State continues to be concerned about the security situation in Nepal and urges American citizens contemplating a visit to Nepal to obtain updated security information before they travel and to be prepared to change their plans at short notice. This supersedes the Travel Warning issued on May 11, 2006.

The restoration of Nepal’s parliament, formation of a new government, and the signing of a comprehensive peace agreement in November 2006 are positive developments. These developments have not, however, resulted in the end of human rights abuses, including murder, kidnapping and extortion. Despite the signing of a comprehensive peace agreement by the Government and Maoist insurgents, Maoist extortion and abductions continue. Maoists freely roam the countryside and cities, sometimes still openly bearing their weapons. Travel via road in areas outside of the Kathmandu valley is still dangerous and should be avoided. There have been attacks in the countryside involving foreigners. Trekkers and other individuals who resist Maoist extortion demands have been threatened, sometimes assaulted, and risk being detained. In March 2006, Maoists detained several Polish trekkers after the trekkers refused to pay extortion.

Since the cease-fire in April 2006, hotels and businesses frequented by American citizens have been the target of extortion demands and, in some cases, have become the focus of demonstrations. In November 2006, the Embassy received numerous firsthand accounts from resident American citizens that Maoist cadres had approached them and demanded food and lodging. These demands were often accompanied by threats of physical violence. Nepalese staff of Americans who resisted such demands were, in some instances, beaten.

Though the Maoist leadership has publicly prohibited their cadres from engaging in all human rights abuses, including extortion and kidnapping, local media outlets continue to report numerous incidents in which Maoist cadres extort money, kidnap, kill and threaten Nepalese citizens.

While widespread protests have abated, the potential for demonstrations and disruptions remains high. During recent demonstrations, protestors used violence, including burning vehicles, throwing rocks during street protests and burning tires to block traffic. Government security forces responded with force at times to quell demonstrations. Given the nature, intensity and unpredictability of disturbances, American citizens are urged to exercise special caution during times when demonstrations are announced, avoid areas where demonstrations are occurring or crowds are forming, avoid road travel and maintain a low profile. Curfews can be announced with little or no advance notice, and American citizens are urged to consult media sources and the Embassy’s website (http://nepal.usembassy.gov) for current security information.

U.S. official personnel do not generally travel by road outside the Kathmandu Valley. All official travel outside the Kathmandu valley, including by air, requires specific clearance by the Regional Security Officer. As a result, emergency assistance to U.S. citizens may be limited. Active duty U.S. military and Department of Defense contractors must obtain a country clearance for official and unofficial travel to Nepal.

Crime in the Kathmandu Valley, including violent crime and harassment of women, has increased since April 2006. Police recently have reported a number of robberies by armed gangs, and in some cases victims have been attacked and injured. Solo trekkers have also been robbed by small groups of young men, even on some popular trails. In late 2005, two European women were murdered in Nargarjun Forest, a popular tourist destination in the Kathmandu Valley. The two murders occurred within weeks of each other and both involved women hiking alone. The body and valuables of one woman were recovered and theft did not appear to be the motivation behind the crime. Both crimes remain unsolved and no culprit(s) has been identified. Visitors should avoid walking alone after dark and carrying large sums of cash or wearing expensive jewelry.

U.S. citizens who travel to or reside in Nepal should factor the potential for violence into their plans, avoid public demonstrations and maintain low profiles while in Nepal. U.S. citizens are urged to register with the Consular Section of the Embassy by accessing the Department of State’s travel registration site at https://travelregistration.state.gov or by personal appearance at the Consular Section. The Consular Section is located at the Yak and Yeti Hotel complex on Durbarmarg Street. The section can be reached directly at (977) (1) 444-5577 or through the Embassy switchboard. The U.S. Embassy is located at Pani Pokhari in Kathmandu, telephone (977) (1) 441-1179; fax (977) (1) 444-4981, website http://nepal.usembassy.gov. The Consular Section can provide updated information on travel and security.

U.S. citizens should also consult the Department of State’s Consular Information Sheet for Nepal and Worldwide Caution Public Announcement via the Internet on the Department of State’s home page at http://travel.state.gov or by calling 1-888-407-4747 toll free in the United States and Canada, or, for callers outside the United States and Canada, a regular toll line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).