Nepal

PROFILE
PEOPLE
HISTORY
GOVERNMENT AND POLITICAL CONDITIONS
ECONOMY
DEFENSE
FOREIGN RELATIONS
U.S.-NEPAL RELATIONS
TRAVEL

Compiled from the November 2007 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

Geography

Area: 147,181 sq. km. (56,136 sq. mi.), about the size and shape of Tennessee, bordering China and India.

Cities: Capital—Kathmandu (3 districts) (pop. 2.2 million est.). Other cities—Biratnagar, Patan, Pokhara, Birgunj, Dharan, Nepalgunj.

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, including Mount Everest. 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: (2007 estimate) 29 million.

Annual growth rate: (2007 estimate) 2.132%.

Population breakdown/distribution: Rural (86%); female (50%); in the southern Terai region (49%); in the hills (44%); 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 (81%), Buddhism (11%), Islam (4%), and others (4%).

Languages: Nepali and more than 12 others.

Education: Years compulsory—0. Attendance—primary 80.4%, secondary 20%. Literacy—49% (63% male, 35% female).

Health: Infant mortality rate (2007 estimate)—63.7 deaths/1,000 live births. Life expectancy (2007 estimate)—61.9 years for males and 65.5 years for females.

Work force: Agriculture—71%; industry—3%; services—11%; other—1%.

Government

Type: Interim. An interim Parliament was formed on January 15, 2007 after a comprehensive peace agreement between the ruling Seven-Party Alliance and the Maoist rebels. Prime Minister and Council of Ministers chosen through political consensus among the eight ruling parties on April 1, 2007; role of monarchy suspended, with future status to be decided by upcoming Constituent Assembly.

Constitution: Interim constitution promulgated on January 15, 2007.

Government branches: Executive—Prime Minister (head of government), interim Council of Ministers formed on April 1, 2007. Legislative—interim Parliament is the unicameral House of Representatives, consisting of 329 members; 194 were members of the old Parliament, 14 were former National Assembly members, 73 were appointed by the Maoists, and 48 were appointed by the various political parties. 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: Nepali Congress Party, Nepali Congress-Democratic Party, Communist Party of Nepal-United Marxist Leninist, Communist Party of Nepal-Maoist (still on the U.S. terrorist exclusion list), National Democratic Party (RPP), Nepal Goodwill Party-Ananda Devi (NSP-A), People's Front Nepal, United Left Front, and others.

Elections: No national elections since 1999; Constituent Assembly election planned.

Suffrage: Universal over 18. Defense/police (FY 2006/2007) $248 million.

National Day: Democracy Day, Fal-gun 7 (mid-February).

Economy

GDP: (2005/2006) $7.7 billion.

Annual growth rate of real GDP: (FY 2005/2006) 2.38%.

Per capita income: (gross national product, FY 2005/2006) $322.

Avg. inflation rate: (Consumer Price Index, November 2006 est.) 8.6%.

Natural resources: Water, hydropower, scenic beauty, limited but fertile agricultural land, timber.

Agriculture: (38% of GDP) Products—rice, wheat, maize, sugarcane, oilseed, jute, millet, potatoes. Cultivated land—25%.

Industry: (10% of GDP) Types—carpets, pashmina, garments, cement, cigarettes, bricks, sugar, soap, matches, jute, hydroelectric power.

Trade: (2005/2006) Exports—$834 million: carpets, pashmina, garments. Major markets—Germany and the U.S. Imports—$2.2 billion: manufactured goods. Major supplier—India.

Budget: (FY 2006/2007) $1.9 billion; military allocation $139 million.

Exchange rate: (as of July 16, 2006) 74.10 Nepalese rupees=U.S. $1.00.

Fiscal year: July 16-July 15.

PEOPLE

Perched on the southern slopes of the Himalayan Mountains, 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.

The Terai, a part of the Ganges Basin with 20% of Nepal's land, is the country's breadbasket. Much of the population is physically and culturally similar to the Indo-Aryan people of northern India. People of Indo-Aryan and Mongoloid origin live in the hill regions. 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 over 7% of the population.

Religion is important in Nepal; the Kathmandu Valley alone has more than 2,700 religious shrines. According to the 2001 census, Nepal is about 81% Hindu. Buddhists account for about 11% of the population. The interim constitution promulgated on January 15, 2007 declared the country a “secular state.” Buddhist and Hindu shrines and festivals are respected and celebrated by many. The government celebrates most Hindu and some Buddhist holidays. Nepal also has small Muslim and Christian minorities. Certain animistic practices of old indigenous religions also 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 Hindi and 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 numbeber 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 by the British in a war 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 highly 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 administrattion. 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 the British model.

Democracy Develops

In early 1959, King Mahendra, who had succeeded his father Tribhuvan in 1955, 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 con

stitution on December 16, 1962. The new constitution established a “partyless system of panchayats (councils), which King Mahendra claimed was 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 syste 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 out of 205 seats 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 Communist Party of Nepal-United Marxist Leninist Party (CPN-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.

Maoist Insurgency

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 13,000 police, civilians, and insurgents were killed in the conflict. 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, which the Parliament approved 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 weeklong 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.

Under Chand's 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 cease-fire. Thapa resigned in May 2004 as a result of political pressure. In June 2004, the King reinstated formerly dismissed Sher Bahadur Deuba as Prime Minister.

King's Direct Rule

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 nearly three months. His new government was sworn in on February 2, 2005. The Council of Ministers under the King's chairman-ship was reshuffled twice during the King's 15 months of direct rule.

People's Movement

In April 2006, the major political parties, in cooperation with the Maoists, organized massive countrywide demonstrations for the restoration of democracy, forcing the King to relinquish power. On April 24, 2006, King Gyanendra reinstated the 1999 Parliament. Former Prime Minister Girija Prasad Koirala of the Nepali Congress Party was selected by the Seven-Party Alliance (SPA) of political parties to again lead the government. The Maoists declared a unilateral cease-fire on April 26, and the new Koirala government announced its own unilateral ceasefire and plans for peace talks with the Maoist insurgents on May 3, 2006. The SPA and the Maoists have since signed a number of agreements, including, in November 2006, a comprehensive peace agreement to end the decade-long insurgency. Both sides also agreed to an arms management process and elections for a Constituent Assembly. On January 15, 2007 a 329-member interim Parliament, including 83 Maoist representatives and other party representatives, was constituted. The first sitting of the Parliament unanimously endorsed an interim constitution, which replaced the constitution of 1990. On April 1, 2007, the ruling eight-party government formed an interim Council of Ministers through political consensus, including five Maoist ministers.

GOVERNMENT AND POLITICAL CONDITIONS

A Maoist insurgency—punctuated by cease-fires in 2001, 2003, 2005, and the latest one from April 26, 2006— has been ongoing since 1996. After King Gyanendra announced the reinstatement of Parliament on April 24, 2006, the Maoists declared a three-month unilateral ceasefire on April 26, 2006 which the new Koirala government reciprocated on May 3, 2006. Since then the Seven-Party Alliance (SPA) and the Maoists have signed five agreements, culminating in the comprehensive peace agreement of November 21, 2006, effectively ending the insurgency. However, Maoist violence and intimidation have continued since the agreement.

The main agenda of the SPA and the Maoists is to hold a Constituent Assembly (CA) election. The Constituent Assembly would draft and promulgate a new constitution defining the future political system in Nepal. The interim constitution, adopted on January 15, 2007, expressed full commitment to democratic ideals and norms, including competitive multiparty democracy, civil liberties, fundamental human rights, adult enfranchisement, periodic elections, press freedom, an independent judiciary, and the rule of law. The interim constitution also guaranteed the basic rights of Nepali citizens to formulate a constitution for themselves and to participate in the Constituent Assembly in an environment free from fear. The interim constitution transferred all powers of the King as head of state to the prime minister and stripped the King of any ceremonial constitutional role. Under the interim constitution, the fate of the monarchy will be decided by the first meeting of the Constituent Assembly. The interim Parliament is a unicameral house.

After promulgation of the interim constitution, many socially marginalized ethnic communities, including the Madhesis of the lowland Terai, began widespread protests against the proposed proportional representation system incorporated in the new constitution. After a Maoist shot and killed one of the demonstrators, violent protests erupted with clashes between police and demonstrators and attacks on government facilities in at least 10 districts, resulting in the death of over 30 people. Prime Minister Koirala, in an address to the nation on February 7, 2007 promised to amend the constitution to meet the demands of the Terai people. However, the situation remains tense, with continuing protests and violence.

Nepal's judiciary is legally separated from the executive and legislative branches and, in practice, has increasingly shown the will to be independent of political influence. However, by asserting executive control over the judiciary, the interim constitution called into question this independence. Under the interim constitution, the Prime Minister appoints the Chief Justice on the recommendation of the Constitutional Council, and the Chief Justice appoints other judges on 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.

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 rul and suspension of many civil rights—including freedom of expression, assembly, and privacy—was a setback for human rights in Nepal. During this three-month period, censors were deployed to major newspapers, and many political leaders were kept under house arrest. The King's government restricted the media from publishing interviews, articles, or news items against the spirit of the royal proclamation of February 1, 2005 or in support of terrorist or destructive activities. The reinstated government, led by Prime Minister Koirala, reversed these decisions in May 2006. The interim constitution promulgated on January 15, 2007 ensured unrestricted freedom of expression.

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 forces, violations ranged from disappearances to executions. 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.

After the April 2006 cease-fire announced by the government and the Maoists, incidents of human rights violations by the government declined substantially while incidents of human rights violations by the Maoists remained relatively unabated. Even after signing a comprehensive peace agreement with the government in November 2006, Maoists' extortion, abduction, and intimidation largely remained uncontrolled. Although activities by other political parties have increased significantly in the rural parts of Nepal, political party representatives, police, non-governmental organization (NGO) workers, and journalists reported continuous threats and intimidation by Maoist cadres. During the January-February 2007 uprising in the Terai, reports of government security forces using excessive force to quell demonstrations were common.

There are three major daily English-language newspapers, “The Kathmandu Post,” “The Himalayan Times” and “The Rising Nepal.” The last and its vernacular sister publication are owned by a government corporation. There are hundreds of smaller daily and weekly periodicals that are privately owned and of varying journalistic quality. Views expressed since the 1990 move to democracy are varied and vigorous. Currently, 75 radio and four television stations are privately owned and operated, following 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.

Trafficking in women and child labor remain serious problems. Discrimination against women and lower castes is prevalent.

Principal Government Officials

Last Updated: 2/1/2008

King: GYANENDRA (Bir Bikram Shah Dev)

Prime Min.: Girija Prasad KOIRALA

Min. of Agriculture & Cooperatives: Chhabi Lal BISWOKARMA

Min. of Culture, Tourism, & Civil Aviation: Prithvi Subba GURUNG

Min. of Defense: Girija Prasad KOIRALA

Min. of Education & Sports: Pradeep NEPAL

Min. of Finance: Ram Sharan MAHAT

Min. of Foreign Affairs: Sahana PRADHAN

Min. of Forest & Soil Conservation: Matrika YADAV

Min. of Health: Girirajmani POKHAREL

Min. of Home: Krishna Prasad SITAULA

Min. of Industry, Commerce, & Supplies: Sham Sundar GUPTA

Min. of Information & Communications: Krishna Bahadur MAHARA

Min. of Labor & Transport Management: Ramesh LEKHAK

Min. of Land Reform & Management: Jagat Bahadur BOGATI

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

Min. of Local Development: Dev GURUNG

Min. of Peace & Rehabilitation: Ram Chandra POUDEL

Min. of Physical Planning & Public Works: Hisila YAMI

Min. of Science & Technology:

Min. of Water Resources: Gyanendra KARKI

Min. of Women, Children, & Social Welfare: Pampha BHUSAL

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 $322. 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 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 71% of the population and providing 38% 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 2.8% in FY 2005/2006 compared to an increase of 8.3% in FY 2004/2005. Imports grew by 9.8% in FY 2005/2006 compared with 9.2% in FY 2004/2005. Exports were constrained by a prolonged phase of general strikes, industrial closures, and political turmoil during the second half of FY 2005/2006 and also by a significant drop in Nepal's main export, ready-made textile products. The trade deficit for FY 2004/2005 was $1.2 billion, which widened to $1.4 billion in FY 2005/ 2006. 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, GDP recorded a negative growth rate of 0.33%, largely because of the Maoist insurgency. GDP grew 3.1% in FY 2002/2003 and 3.6% in FY 2003/2004, and again slipped to 2.4% in 2004/ 2005 and to 2.4% in FY 2005/2006, according to the Central Bureau of Statistics.

Despite its growing trade deficit, Nepal traditionally has a balance of payments (BOP) surplus due to remittances from Nepalese working abroad. In FY 2005/2006, Nepal recorded a balance of payments surplus of $355 million, as compared to $79 million in FY 2004/2005. The lower BOP surplus in FY 2004/2005 was mainly attributed to the lower inflow of net government loans, and the higher surplus in FY 2005/2006 was due to resumption of foreign loans and assistance after the April 2006 People's Movement. Both the current account and the capital account registered significant growth in FY 2005/2006. Nepal receives substantial amounts of external assistance from India, the United Kingdom, the United States, Japan, Germany, and the Scandinavian countries. Several multilateral organizations—including the World Bank, the Asian Development Bank, and the UN Development Program—also provide assistance. Such assistance decreased substantially in FY 2004/2005 after the royal takeover of February 1, 2005 and also because of the Maoist conflict, which 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. However, the decade-long insurgency and a global economic slowdown threatened the tourism industry. Figures from the Department of Immigration showed a 4% increase in arrivals in 2006, but these remained well below numbers during 1999, the peak tourism year. Recent tourist arrivals have given relief to the tourism-based hotel, trekking, mountaineering, and aviation industries. Since the political parties and Maoists brokered a comprehensive peace agreement in November 2006, the tourism industry hoped that guest arrivals in Nepal would bounce quickly back to 1999 levels and higher.

Swift rivers flowing south through the Himalayas have massive hydroelectric potential to service domestic power needs and growing demand from India. Only about 1% of Nepal's hydroelectric potential is currently tapped. Several hydroelectric projects, at Kulekhani and Marsy-angdi, 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 hydroelectric 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 planned private-sector West Seti (750 MW) storage project is dedicated to electricity exports. An Australian company signed a power purchase agreement with the Indian Power Trading Corporation in September 2002 and has the lead on the project. 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. The Department of Electricity Development recently obtained proposals from 14 foreign companies for survey licenses of three projects—600 MW Budhi Gandaki, 402 MW Arun III, and 300 MW Upper Karnali. The Ministry of Water Resources is currently evaluating the proposals and has not awarded the survey licenses. 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 95,000-strong Nepalese Army (NA), which is organized into six divisions (Far-Western, Mid-Western, Western, Central, Eastern, and Valley Divisions) with separate Aviation, Parachute, and Security Brigades as well as brigade-sized directorates encompassing air defense, artillery, engineers, logistics, and signals which provide general support to the NA. The Prime Minister is the Supreme Commander of the NA. The Prime Minister is currently Minister of Defense. General Rookmangud Katawal is Chief of the Army Staff (COAS), also the senior commissioned officer of the NA.

Since 1958, the NA has contributed over 50,000 peacekeepers to 28 peacekeeping missions such as the UN Interim Force in Lebanon (UNIFIL), the UN Protection Force (UNPRO-FOR) 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). NA units are presently serving in the UN Mission in Sierra Leone (UNAM-SIL), 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 (USPA-COM) coordinates U.S. military engagement and security assistance with Nepal through the Office of Defense Cooperation. Cumulative U.S. military assistance to the NA has consisted of $21.95 million in grant assistance: Foreign Military Financing (FMF) since 2002, annual professional and technical training provided under the International Military Education and Training Program (IMET grant for $650,000 in FY 2006), additional training provided under the Counter Terrorism (CT) Fellowship (approximately $200,000 annually), and approximately $2 million of Enhanced International Peacekeeping Capabilities (EIPC) funding to increase the pool of international peacekeepers and promote interoperability. Many NA officers attend U.S. military schools, 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 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 with India in 1991 is renewed every five years. The most recent renewal was on March 6, 2007, which expires on March 5, 2012. A transit treaty with India, which allows Nepal to trade with other countries through the Calcutta/ Haldia ports, was extended on March 30, 2006 for seven years.

Nepal 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. A SAFTA tariff liberalization program (TLP) was scheduled to be implemented July 1, 2006. All member countries, except for Nepal, whose TLP started on August 1, 2006, reduced tariffs for each other. However, on July 1, 2006, Pakistan officially toughened its stance of not trading with India under the SAFTA arrangements and did not announce TLP for India. Due to the stalemate between India and Pakistan, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation Free Trade Agreement (BIMSTEC-FTA), which was initially scheduled to come into force on July 1, 2006, was deferred indefinitely. The BIMSTEC Summit scheduled for February 8, 2007, in India was also deferred due to political instability in member states, including Nepal. 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 center on helping Nepal build a peaceful, prosperous, and democratic society. 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. USAID is also supporting Nepal's peace process, as well as its preparation for Constituent Assembly elections. 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

Last Updated: 2/19/2008

KATHMANDU (M) Maharajgunj, Kathmandu, APO/FPO 6190 Kath-mandu Place, Dulles, VA 20189-6190, (977) 1-400-7200, Fax (977) 1-400-7272, INMARSAT Tel 808-559-1213 and 808-659-0920, Workweek: Monday-Friday 0800-1700, Website: http://nepal.usembassy.gov.

TRAVEL

Consular Information Sheet

January 8, 2008

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 for almost 11 years. The Government signed a Comprehensive Peace Agreement on November 21, 2006, formally ending the Maoist insurgency, which began in 1996. The Maoist insurgents and other political groups have yet to fully end the violence.

Entry Requirements: A passport and visa are required. Travelers may obtain visas prior to travel or 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, Sindh-upalchowk District (Northern Border); Belahia, Bhairahawa (Rupandehi District, Western Nepal); Jamunaha, Nepalgunj (Banke District, Mid-Western Nepal); Mohana, Dhangadhi (Kailali District, Far Western Nepal); and Gadda Chauki, Mahendranagar (Kanchanpur District, Far Western Nepal). Visas and information on entry/exit requirements can be obtained from the Embassy of Nepal at 2131 Leroy Place NW, Washington, DC 20008, telephone (202) 667-4550 or the Consulate General in New York at (212) 370-3988.

Upon departure from Tribhuvan International Airport, all foreigners must pay an airport exit tax (currently approximately $27), regardless of the length of their stay. Tourists may stay in Nepal no longer than 150 days in any given calendar year.

Active duty U.S. military and Department of Defense contractors must obtain a country clearance from their parent units to be forwarded to the Defense Attache's Office at the U.S. Embassy in Kathmandu for both official and unofficial travel to Nepal.

Travelers occasionally report immigration difficulties with Chinese authorities when crossing the Nepal-China border over land 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.

Safety and Security: A Travel Warning remains in effect because the Department of State continues to be concerned about the security situation in Nepal. Despite the signing of the November 21, 2006 Comprehensive Peace Agreement, Maoists and other political movements continue extortion, abduction and killing. Since April 2006, numerous groups using violent methods to advance various political goals have formed in Nepal. Business people (both Nepalese and foreign) and tourists who resist Maoist extortion demands have been threatened, sometimes assaulted, and risk being detained. Maoist demonstrators have stopped and in some cases attacked vehicles, including those of the U.S. Embassy. Since early 2007, the Maoist Young Communist League (YCL) has harassed and attacked established tourist facilities and infrastructure, and has threatened Kathmandu-based personnel of a U.S. non-governmental organization.

In May 2007, YCL cadre attacked with stones a UN High Commission for Refugees (UNHCR) vehicle carrying the UNHCR Resident Representative and the U.S. Ambassador in Jhapa District in the Terai.

The U.S. Embassy strongly recommends against non-essential travel to the Terai, the southern region bordering India. Maoist splinter groups in the Terai as well as other violent Terai-based groups continue to kidnap and murder Nepalese citizens. Additionally, ongoing political agitation and civil unrest in the Terai, including violent clashes between various political groups and Maoist splinter groups, as well as inter-communal violence and criminality, have increased. 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.

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, resident Americans reported that they were told that they would have to house and feed Maoists intending to participate in rallies in Kathmandu. In a few cases, local Nepali staff of the American residents were threatened or beaten when they attempted to resist this demand. The discrepancy between the Maoists' publicly stated intentions and their behavior, combined with their consistent anti-American rhetoric, remains a serious concern.

Americans traveling to Nepal should be aware of the potential for large or violent demonstrations. Frequently, demonstrators burn vehicles, throw rocks at passing motorists, and burn tires to block traffic. Given the frequency, 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 web site (http://nepal.usembassy.gov) for current security information. Click the “Demonstration Alert” link.

In a November 2002 press release, the Maoists claimed responsibility for targeting and murdering two locally-hired U.S. Embassy security guards. In 2003, the Department of State 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.

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 explosive devices. Movement in such areas at or after dusk should not be undertaken. For the latest security information, Americans traveling abroad should regularly monitor the Department of State, Bureau of Consular Affairs' web site at http://travel.state.gov, where the current Travel Warnings and Travel Alerts, including the Travel Warning for Nepal as well as the Worldwide Caution, 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. and Canada or, for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444.

Bandhs (General Strikes): A“bandh” (forced closure of businesses, schools and halting of vehicular traffic) is a frequently used and longstanding form of political expression in Nepal. Many bandhs are enforced through intimidation and violence. During a recent bandh, an American citizen was injured when demonstrators threw a rock and broke the window of the vehicle in which he was traveling to the airport. Bandhs tend to be unpredictable and may take place without any prior notice. Bandhs typically draw thousands of demonstrators into the streets who sometimes incite or initiate violence. Bandhs tend to focus on the central areas of Kathmandu, but they also can be nationwide, and bandh-related violent disturbances occur throughout Nepal.

Bandhs in the Terai region of Nepal also occur and have been known to last for several weeks, causing acute shortages of daily food supplies and bringing vehicular traffic to a complete halt. Individuals have been reported kidnapped or killed for not complying with the bandhs in the region.

During bandhs, U.S. citizens are urged to avoid all unnecessary travel. If travel by vehicle is necessary, U.S. citizens should pay attention to the volume of traffic on the roads, waiting until a pattern of traffic is well established before undertaking travel, and maintaining 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, especially during scheduled 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.

Crime: Although the rate of violent crime is low in Kathmandu relative to that in comparably-sized American cities, crime in Kathmandu and in adjacent areas has risen dramatically since April 2006. 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. In another 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. Criminal activity and extortion of tourists occurs frequently along popular hiking trails. Trekkers and other individuals who resist extortion demands are threatened, sometimes assaulted, and risk being detained. In December 2007, Maoist cadres in the popular Annapurna circuit trekking area beat up a Swiss national who declined to pay the “donation” demanded by them. He sustained serious head injuries, requiring stitches.

In late 2005, two European women were murdered in Nargarjun Forest, a popular tourist destination near Kathmandu. 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 culprits have been identified.

Visitors should avoid walking alone after dark and carrying large sums of cash or wearing expensive jewelry. Women travelers are advised not to wear revealing clothing in public places as this can be culturally offensive to Nepalese. In addition, visitors should consider exchanging money only at banks and hotels and limiting shopping to daylight hours. There have been several reported incidents in which tourists have had their belongings stolen from their rooms while they were asleep. 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—ot in a backpack or handbag. Nepali police forces have limited resources and lack sufficient manpower to effectively enforce law and order. Their services are not up to Western standards. Many cases reported to the police remain unresolved.

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 extremely limited and is generally not up to Western standards. Typical travelers' complaints can be addressed by the clinics in Kathmandu, and some surgeries can also be performed in the capital. However, serious illnesses often require evacuation to the nearest adequate medical facility (in Singapore, Bangkok or New Delhi ). Illnesses and injuries suffered while hiking in remote areas often require evacuation by helicopter to Kathmandu. 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. Medical facilities are often overwhelmed due to insufficient resources and the emergency services available fall far short of those expected in the U.S.

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 web site at http://wwwn.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) web site 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.

Travel via road in areas outside of the Kathmandu Valley remains dangerous and should be avoided. In general, roads in Nepal are in poor condition and lack basic safety features, resulting in significant numbers of accidents and fatalities. 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. Visitors throughout Nepal, including in Kathmandu, should use metered taxis and avoid public buses and microbuses. Various Nepalese political groups frequently announce road closures (blockades) in certain districts of Nepal and forcibly block major roads throughout the country, including roads to Tibet, India, Chitwan, Pokhara, and Jiri. Most recently, in May 2007, a number of Americans were stranded at the border crossing to India in southeastern Nepal for several days when the border was closed due to political demonstrations. U.S. citizens should travel into and within Nepal by air whenever possible. In the Kathmandu Valley, traffic jams are common on major streets, particularly from 9:00 a.m. to 6:00 p.m. 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 increased by approximately 15 percent per year. Many drivers are neither properly licensed nor trained. Many vehicles are poorly maintained, and public vehicles are generally overloaded. Sidewalks and pedestrian crossings are nonexistent 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 web site of Nepal's national tourist office at 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 web site at http://www.faa.gov.

Special Circumstances: The Government of Nepal has authorized the Trekking Agency Association of Nepal (TAAN) and the Nepal Tourism Board (NTB) to implement a new system for foreign hikers called the Trekkers' Information Management System (TIMS). Beginning January 1, 2008, foreign visitors on hiking trips in Nepal, including those not with organized hiking groups, need to have a valid TIMS card issued by TAAN, its member agencies, or NTB. In the case of an emergency, the new system will help authorities ascertain the whereabouts of trekkers. TIMS cards are available free of charge through authorized trekking companies, the TAAN office in Kathmandu or Pokhara, and the NTB office.

Robberies, extortion and intimidation continue as in previous years throughout the Kathmandu Valley and the trekking areas in Nepal. Risks of encounters with Maoist groups, or groups posing as Maoists, are very high in nearly all trekking routes of Nepal, and injuries to foreigners for arguing or failing to pay extortion demands continue to occur. Checkpoints established by Maoist-affiliated groups where armed individuals demand payment for “trekking permits” still occur and pose a risk to travelers. Groups posing as Maoists have used violent tactics to intimidate tourists who initially refused to pay or were seen as argumentative. Americans are urged to refrain from arguing with such individuals or “talking back” to them, as such a response may increase the risk of violence.

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 more vulnerable to criminals. 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. Destruction of telephone services to many trekking areas by the Maoist insurgents often 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 high 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 in certain National Park areas may require a special permit from the Government of Nepal and a fee. Americans are encouraged to check on the fees and permits prior to their travels.

A number of tourists have drowned while swimming in Phewa Lake and other adjoining lakes in Pokhara due to flash floods triggered by monsoon rains or after becoming entangled in submerged tree branches or roots.

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.

Many Nepal-based volunteer organizations have recently formed and maintain websites. However, the Embassy has received reports from a number of American volunteers complaining that such organizations have swindled them after arriving in Nepal to work as volunteers. Americans are cautioned to be aware of this practice and encouraged to research the legitimacy of such organizations. The Social Service Council of the Government of Nepal maintains a list of legitimate volunteer organizations and information can be verified by emailing inquiries to [email protected].

Nepal has a controlled, or fixed, currency exchange rate with the Indian Rupee. 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. The Nepalese Department of Immigration has reported an increasing number of foreigners being arrested for currency violations. 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.

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.

Nepal is prone to earthquakes, landslides, and flooding. The Government of Nepal's ability to respond is limited. General information about natural disaster preparedness is available via the Internet from the U.S. Federal Emergency Management Agency (FEMA) at http://www.fema.gov.

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 Nepalese 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. 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

Registration and Embassy Locations: 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 web site so that they can obtain updated information on travel and security within Nepal. Americans without Internet access may register directly with the U.S. Embassy. 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 in Maharajgunj in Kathmandu, telephone (977) (1) 400-7200. The Consular Section can be reached through the Embassy switchboard at (977) (1) 400-7200, directly by fax at (977) (1) 400-7281 or email at [email protected]. The U.S. Embassy's web site is http://nepal.usembassy.gov

Travel Warning

September 24, 2007

This Travel Warning provides updated information on the security situation in Nepal. The Department of State remains 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 7, 2007.

Nepal continues to experience sporadic incidents of terrorism and politically-motivated violence in major urban areas. On September 2, 2007, near-simultaneous blasts at three locations in the capital, Kathmandu, killed three persons and injured scores of commuters and bystanders, many of them seriously. Nepal Police believe that the Improvised Explosive Devices were planted intentionally where people congregate, and in a moving microbus carrying passengers. American citizens are reminded to remain on high alert, avoid public transportation (including travel by microbus), and be cautious of unattended baggage in public places, including airports and bus depots.

Despite the signing of the November 21, 2006 Comprehensive Peace Agreement by the Government and the Communist Party of Nepal (Maoist)—a U.S. designated terrorist organization—and the insurgents' entry into an interim government, Maoists continue to engage in violence, extortion, and abductions. The Young Communist League, a Maoist subgroup, continues to extort and abuse people, including threatening Kath-mandu-based personnel of a U.S. Non-Governmental Organization. In November 2006, numerous resident American citizens reported to the U.S. Embassy first-hand accounts of Maoist cadres demanding food and lodging, often accompanied by threats of physical violence. In some instances, Nepalese staff of Americans who resisted such demands were beaten. Since the cease-fire in May 2006, hotels and businesses frequented by American citizens have been targets of extortion demands, forced closures, and have become the focus of demonstrations.

Various armed groups have sprung up in 2007, primarily in the Terai region along the southern border with India, and insurgent violence has affected trade and travel in that area. Violent clashes between Maoists and indigenous groups have taken place since January 2007 in the Terai region, in one case resulting in many deaths. Ethnic tensions in the Terai region have spawned violent clashes with police, strikes, demonstrations and closures of the border with India. The U.S. Embassy strongly recommends against nonessential travel to this region. Clashes between Maoists and groups who oppose them also recently have extended into Kathmandu.

While widespread protests have abated, the potential for demonstrations and disruptions remains high. During demonstrations, protestors have used violence, including burning vehicles, throwing rocks and burning tires to block traffic. 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.

Crime in the Kathmandu Valley, including violent crime and harassment of women, has increased since April 2006. Travel via road in areas outside of the Kathmandu Valley is still dangerous and should be avoided. Police have reported a number of robberies by armed gangs; in some cases victims were attacked and injured. The U.S. Embassy reports an increase in crime in some popular tourist areas. Visitors to Nepal should practice good personal security when moving about, especially at night, and avoid walking alone after dark and carrying large sums of cash or wearing expensive jewelry. In several reported incidents tourists have had their belongings stolen from their rooms while they were asleep. In late 2005, two European women were murdered in Nargarjun Forest, a popular tourist destination in the Kathmandu Valley. The murders occurred within weeks of each other and both involved women hiking alone. Solo trekkers have been robbed by small groups of young men, even on some popular trails. Crime, including violent crime, has further increased in 2007, and police are unwilling or unable to arrest criminals who claim Maoist affiliation.

U.S. official personnel generally do not travel by road outside the Kathmandu Valley. All official travel outside the Kathmandu Valley, including by air, requires specific clearance by the U.S. Embassy's 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.

Although the Government of Nepal no longer considers the Maoists to be terrorists, the U.S. Government's designation of the Communist Party of Nepal (Maoist) as a “Specially Designated Global Terrorist” organization under Executive Order 13224 and its inclusion on the “Terrorist Exclusion List” pursuant to the Immigration and Nationality Act remain in effect. 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.

U.S. citizens who travel to or reside in Nepal 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, located at the U.S. Embassy on Maharajgunj, Kathmandu. The Consular Section can provide updated information on travel and security, and can be reached through the Embassy switchboard at (977) (1) 400-7200 or directly by fax (977) (1) 400-7281. Email: [email protected], web site: http://nepal.usembassy.gov.

U.S. citizens also should consult the Department of State's Country Specific Information for Nepal and Worldwide Caution Travel Alert 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.

International Adoption

August 2006

The information in this section 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 http://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.

The U.S. Embassy regularly meets with the Nepalese government, and specifically the Ministry of Women, Children and Social Welfare (WCS), on a variety of adoption issues and to advocate for the general interests of U.S. adopting parents. The U.S. Embassy is not able, however, to intervene on behalf of individual cases or expedite the Nepalese government adoption process.

Patterns of Immigration: Please review current reports online at http://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 qualifica-tions 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). 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. 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.

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. Government to be adoptive parents and that, if legally qualified, the child will be eligible to immigrate to the United States. This letter is completed after the child is assigned to the parents by the Nepalese orphanage or authority. The Guarantee Letter is a requirement of the Nepalese government, not of the United States Government. Once a Guarantee Letter has been issued, the U.S. Embassy should be contacted with any changes to the case.

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.

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 one-way travel to the United States and countries en route.

Please see the International Adoption section of this book for more details and review current reports online at http://travel.state.gov/family.

Required Documents: 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 Adoptive 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 http://travel.state.gov/family.

Embassy of the United States of America

Yak & Yeti Hotel Complex

Durbar Marg

Kathmandu, Nepal

Tel.: 977-1-444-5577

Fax: 977-1-444-4981

e-mail: [email protected]

website: http://nepal.usembassy.gov

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.