NEPAL-COMMUNIST CHINESE TREATY ON TIBET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP08C01297R000200050002-5
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 15
• Document Creation Date: December 27, 2016
• Document Release Date: August 31, 2012
• Sequence Number: 2
• Publication Date: October 31, 1956
• Content Type: MEMO

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FOREIGN SiliVICH DESPATCH - 93 6R
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FROM EMBASSY NEW DELHI Despatch No, 548
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DEPARTMENT OF STATE, Washington 0700,,er 31, 1956
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Nepal-Communist Chinese Treaty on Tibet /1
Summary. Nepal and Communist China signed a treaty in Kathmanfdie -
September 20, which revises the Nepal.-Tibet treaty of 1856 and regulari
relations between the two countries. Copies of the text of the new treaty,
entitled "Agreement to Maintain the Friendly Relations Between the Kingdom of
Nepal and the Peoples Republic of China and on Trade and Intercourse between
Nepal and the Tibet Region of China," which was released in Kathmandu and
Peking on September 24, are enclosed.
The new treaty comprises an agreement between the two governments and an
exchange of notes; it is to come into effect after ratification bythe two DEC "CD
governments and is valid for eight years. End of Surnma7.?
Chief Treaty Provisions
The agreement itself contains a preamble reaffirming the principles of Panch
Shila first enunciated in the Sino-India Agreement of 1954 and five articles,
-Article I calls for peace --tnd friendship between the two govertnients. Article II
reaffirms a decision reached in August 1955 to exchange diplomatic representa-
tives at the Ambassadorial level (presently both Ambassadors reside in Delhi; '
according to an Indian WA offLaial secret notes were exchanged providing that
this arrangement should be continued). Artiele III abrogates all past treaties
or documents between the two governments including those between Nepal and Tib4S4--
Article IV contains detailed provisions governing travel, trade and ed.lgrimaget;
"
between Nepal and Tibet. It provides for the establishment of trade agencied-hys:1195--
Nepal in Tibet and for an equal limber of trade agencies by the Chinese Goverment
in Nepal, the location of which is to be determined at a later date. Aleilarly,
*markets are specified for Nepalese traders, while an equal number of markets
for trade by Tibetan or Chinese traders is to be determined in the future, Trave.171-2
across the border by nationa3.8 of the two countries will, henceforth be controlle2x...-
by a passport and visa system but inhabitants of the border areas and pilgrims
are exempted from these controls. Article V details the ratification procedure, 11/
The agreement is accompanied by a note containing fourteen clauses listing
in greater detail the provisions governing the status of Nepalese nationals in
Tibet and outlining the terms under which they will be permitted to reside and
do business in Tibet. In addition, it calls for the establishment of Consulates
General at Lhasa and at Kathuand% although again the date of the establishment
? of a Chinese Consulate General in Nepal is to be determined at some future time.
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-ilrova lien Delhi - 10/31
legotiations and Delegations
NegotinetIons between the two gevernments lasted for aprroxi ntely one
month. The Communist Chinese delegation left New Delhi for Kathmandu on
August 13 and talks got underway on August 17. The Chinese delegation was led
by the Chinese Amba3sador to India, PAN Teu-Li, and included five other delegates
and aperoxieately 12 advisers. The other delegates were 14A Au-ming, First
Secretary of the Chinese eembassy in New Delhi who is rerortedly an economic
seecialist, two officials from the Asian Division of the Chinese Foreign Office
identified as YeNG and TaN Pa, and two Tibetans, one of whom was never identified.
The other was first deacribed as Ping Tso RAOSICH, "senior meeber of the
Preparatory Committee for the autonomous Tibetan region in China." However, the
local prels eventually broke the news that he was actually Ragashar SHAPL,
former Co-n nder in Chief of the Tibetan Army (see Embtel 344, Augu3t 8, 1956).
:hen asked by ne seen :by he lied c)ncealed hi; identity, he confined himself to
the cryptic stateaent: "It W3 necessary to do so for the present." According
to the Iletalese Ambassador in 'ew Delhi, the Tibetan representatives put in an
appearance at the opening session and then were relegated to the background by
the Chinese Co:fteunists.
The comol3ition of the :eealese delegation was never officially announced,
but according to Kat' nande aree3 reeorts, officials involved in the negotiations
inclueed Generalain 1;2.0:R, former 7leea1ese Consul in Lhasa, and Nara
Pratap T' ;ecretary of the Foreign Office, as well Is General DAMA:-., 'iepalese
erbasseder to India and Co suelet China (also to Japan), C.P. SHAR2A, anister
for roreinn affins Ind -eriee ln ster Tanka PRASAD.
The talks recessed about September 6 to allow the Chinese delegation to
consult Peking. They eere resumed on September 15 and the agreement was formally
eigned at a ,-.tate baneuet on Septenber 20.
Issues during I:egotiations
During the talks the COI was subject to considerable pressure and lobbying
from -Jenaleee traders and re3idents in Tibet, who sent several delegations to
Katheandu. These delegations, who claimed to represent the ::evIlese bush-less
houses in Lhasa controlling most of the import and export businese? called on
Prime ini3ter Lanka Prasad to urge hie to protect their status and interests
as guaranteed be the 1856 treaty. They were unable to obtain an audience to
present their case to the Chinese delegation. The most important If these dele-
gations aprear to have been the Nepal Traders Association and the 'eeealese
Businessmen's Association of Tibet. eight representatives of the former organi?
zation, including reportedly 3ubha Lalit BANADUF" a member of the Nepalese
Consulate in Lhasa, reached Kathmandu on August 31. Their objective, as reeorted
in the press, was to clarify the status of traders in Lhasa, many of whom, they
said, were being forced to give up traditional trading practices and to evacuate
Lhasa. The Nepalese Businessmen's Association released a 10-poi et memorandum
which it urged the CON to adopt as the basis for its negotiations with the
Chinese. These points, which in essence seek to retain many of the provisions of
the 1856 treaty, giving the Nepalese special prerogatives, were as follows:
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"1. Rights of Nepalese business men in Tibet in matters of trade and
acquisition of land and property should not be disturbed by the new treaty under
negotiation.
20 Nepalese should be adequately protected under Tibetan laws.
3. Kathmandu "and Lhasa should be linked by a proper road to facilitate and
improve trade between the two cities.
4. Indian currency should be made available in Lhasa through the bank of
China.
5. A Nepalese legation shoule be established in Lhasa.
6. Nepalese business men sh)uld be given all facilities, including permission
to visit China and Tibet.
7. Trade exchange between Nepal, Tibet and China ehoeld be promoted.
8. A bank should be established to deal with trade between Nepal and Tibet.
9. Nepal and China should undertake establishment and introduction of
po-t and telegraph servipe between Lhasa and Kathmandu,
10, Tibet should be represented at any talks between Nepal and China."
As might be expected, local pllitical parties also took up the case of the
Nepalese traders and demanded that the GON protect their interests. On September
10 General Subarna Shumshere, President of the Nepali Congress, criticized the-
Chinese treatment of Nepalese traders and disregard for Nepalese interests in
Tibet, uhere he claimed Nepalese had lived for 8000 years. He demanded that
future reletione between Nepal and Tibet be based on the protection of Nepalese
interests, su,ested that ade-uate foreign exchange be made available to Nepalese
traders and, urged that the Chinese authorities guarantee traders adequate
comiunication facilities.
Another issue before the negotiators which was discussed at some length by
? the public was the question of the demarcation of the Nepalese-Tibetan border,
? and several papers carried rerorts that the Chinese Communists had inquired
about the presence of Indian troops at border check posts, The Chinese were
reported to have argued that there was no need, for military patrols at check
posts, but that if such were considered necessary it would be more appropriate
to station Nepalese troops along the border.
It should be recalled thitreanka Prasad stated publicly in February 1956
that the border question would be one of the items on the agenda and that the
GON 'would attempt to obtain a clear demarcation of Nepal's 500 mile frontier
with Tibet. The Prime Minister felt that a more accurate definition of the
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border would help curtail the periodic raids on the Nepalese frontier districts
by "lawless Tibetan elements." However, eight months later, while he was en
route to Peking, Tanka Prasad was quoted in the Calcutta press as stating that
the border issue was not discussed during the negotiations.
In the absence of definitive information, one can only theorize about the
part which this issue played in the talks. It is possibly significant that the
treaty lacked any reference to this question and failed to specify passes and
trading routes to be used by travelers (exept that they shall "use the
Customary routes") in contrast to the Sino-Indian agreement which outlined routes.
This omission might indicate that the negotiations became deadlocked over the
question and that they agreed to disagree. Substantiation of this theory is pro-
vided by the comrtent made by a nember of the Ne!alese Foreign Office to a recent
American visitor to Kathmandu that the border problem was one of the major topics
to occupy the delegates,
Comparison Between the Indian and Neralese Treaties with the CFR
The Sino-Indian treaty of 1954 obviously served as the lodel for the new
agreement ,ahie has many of the characteristics of the parent arrangement. The
major differences result from the broader nature of the negotiations between
Nepal and Red China inv)lving a review of existing treaties concerning Tibet and
a clarification of the status of a large Nepalese population in Tibet which has
been estimated at about 200,000, of which 5000 to 10,000 live in Lhasa. The 1954
treaty, while implicitly recognizing Chinese sovereignty over Tibet, studiously
avoided any reference to Tibet's change in status and confined itself to matters
dealing with "trade and intercourse."
The first three articles of the Sino-Nepaleae treaty, the most important of
which is that abrogating all past treaties between the two countries, are not
found in the 1954 treaty.
Article IV, outlining provisions governing trade, travel, and residence of the
nationals of one country in the other, comprises five paragraphs roughly similar
to the first five articles of the 1954 treaty. The preamble, not in the 1954
treaty, enjoins both parties to safeguard the interests of the nationals of the
other but in accordance with the laws of the country of residence. Trade agencies
designated by the CPR for the Nepalese are located at Shigatse, Kyerong and ?
NyalaM, the last two being border towns on establi5hed trade routes between Nepal
and Tibet. The 1954 treaty specified Gyantae, Yatung_and Phari. Trade by
Nepalese may Also take place in Lhasa, Shigatse, Gyantse and Yatung; the 1954
treaty specified Yotung, Gyantse and Phari as centers for Indian traders. The
introduction of a passport and visa system outlined in Paragraph 5 of Article IV
is similar to that set forth in the 1954 treaty but in practice it is not as far
reaching an innovation as would appear on the surface because the vast majority
of persons crossing the border are exempted from these controls. Thus traders,
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customlrily engaged in trade, may use certificates as a substitute for passports,
inhabitants of the border areas may cross the border without apy certification
and pilgrims are required only to register at the bor-1er checkposts'. Officials
and diplomats of the two coustries, practically the only other category of
travelers, are required to possess passports, visaed by thb other country. The
question remains of who will issue visas to Nepalese nationals in the absence of
Chinese missions in Nepal.
Other highlights of this section of the Treaty are:
1. The postponement to a future date of the designation by the GlN of trade
agencies and market centers for CPR traders;
2. The inclusion of a clause not in the 1954 treaty granting greater free-
dom to border traders who are not required to confine their business to specified
centers and may "continue to trade at traditional markets."
3. .The exemption from taxation of the personal effects and baggage of
pilgrims;
4. Authorization ,of travel by pilgrims and traders along "customary routes";
the 1954 treaty designated the passes and routes to be used.
The note accompanying the treaty contains fourteen clauses, a number of
which are not found in the 1954 treaty. The first clause provides for the
establishment of Consulates General by both parties in Lhasa and Kathmandu, the
date of the installation of the latter being postponed to some future time.
Clauses three, four, five, seven, eight, and fourteen curtail concessions pre-
viously enjoyed by the Nepalese in Tibet. Clause two is similar to one in the
1954 treaty calling for the withdrawal of military escorts from Tibet but it
contains the additional phrase "...together with their arms and ammunition."
Clause six calli for t'e adoption of measures to promote trade and authorizes
the levying of custryqs duties "in accordance with the favoured two-rates of
each government," Clause nine provides for the establishment of direct wireless
telegraphic service between Lhasa and Kathmandu. The remaining clauses tep,
eleven, twive and thirteen concerning rights or facilities to be accorded the
nationals of one country by the othermabeithave similar or identical language
to that in the 1954 treaty.
Comment
So far the Embassy has received two conflicting interpretations of GON
objectives and tactics in the talks. Several Nepalese officials of whom General
Daman, the Nepalese Imbassador in New Delhi, is the most vocal, have conveyed
a picture of the Nepalese being forced into negotiations because of the need to
regularize relations with their neighbor to the north and to salvage the best
possible concessions for Nepalese traders in Tibet. According to these sources
the Nepalese entered the negotiations aware of their lack of bargaining power,
and realizing that about their only assets were possible Chinese deference to
world opinion, Peking's desire not to antagonize the GOI and the regime's
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willingness to concede immediete gains for long run objectives of infiltration
and subversion. The Nepalese were also reportedly coneciJus of the Chinese
threat to their security and interest, already demonstrated by difficulties
along the border and a number of incidents involving Nepalese traders in Tibet.
GUN intentions were to keep the Chinese out of Nepal, to attempt to obtain the
best poesible conditions under the circumstances for their traders, and to press
for a C nsulate General in Lhasa as the best means by which to insure some pro-
tection for their nationals. In return, the Nepalese expected to forego the
annual tribute paid by the Tibetans under the terns of the 1856 treaty, to
recognize Chinese sovereignty over Tibet and to give up claies te extra-territorial
rights for their nationals.
Another interpretation h-s reached the Embassy through the British
Ambassador to ::epal who has qu)ted Indian Ambassador SAH.Y as stating that the
GUN took the initiative in su ? eisting the establiShaent of a Chinese Consulate
General in Kathmandu. According to this source the Chinese at the outset asked
for four trading agencies in Nepal but did not favor setting up a mission in
Kathmandu; they eventually co-lpremised by agreeing in principle to exchange
Cowiletes General. The Chine e motives for taking this position are not known
butligre eresumably abere of GUI opposition to the establishment of a diplomatic
mission end may not have eiehed to offend Indian seneitivities on this point.
The reasons elven by the Indian Ambassador for the Nepalese initiative on
this question include the following:
1. The GUN estieated that the presence of the Chinese in Kathmandu would
encourage the U.30 and poeibly other governments to establish missions. This
would heve the advantage of counterbalancing GUI influence and of helping to
insure the independence if Nepal which the GON feels is threatened by India.
2. Faced with a budget deficit, a hopelessly inadequate tax system which
it is politically difficult to overhaul and a need for large scale financing
for the Arst Five Year Plans the CON felt that an increase in the number of
foreign missions in the country would put it in a better bargaining eosition in
eliciting greater economic assistance.
3. An increase in foreign installations would boost the local economy by
providing more jobs, an influx of foreign capital, the sale of real estate, etc.
This would appear to be a relatively minor consideration but the country's
economy is sosaall and there are liIso few employment opportunities for educated
Nepalese that this consideration may have played a surprisingly important part
in GOU reasoning?
Whatever the facts may be, the GUN appears to regard the treaty as a step
forward in enheecing its prestige, as a preliminary to better and closer relations
with China and as additional insurance against GOI encroachments. On the other
hand, GUI officials are reported as "disturbed" or "distressed" or "furious", and
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the treaty could well be another irritant in the deteriorating relations between
the two countries. Part of the GOI reaction is one of petulance at having its
advice ignored; insofar as Nepal is concerned, the GOI does not consider itself
governed by Panch Shila. More important, the GOI undoubtedly feels that its
special position in Nepal is threatened by the prospects of a Chinese mission
in Kathmandu and by trade agencies in other parts of the country which can overtly
and covertly reorient Nepal away from India and loosen the ties between the two
countries.
In this context, the deterioration in Indo-Nepalese relations which has
become apparent in the last feu months has been accelerated by this treaty. In
the absence of observers on the spot, one can only speculate as to the motives
of the CON in embarking on this path which has the earmarks of a carefully
considered policy. Syne of the factors probably motivating or influencing the
Nepalese along this course are:
1. The present Nepalese cabinet, led by Tanka Frasad, is well aware that
it lacks broad-based porular support and that it is in power at the sufferance
of the King. Like other Nepalese polltalians Tanka Prasad and his colleagues
want to stay in office and if at all possible capitalize on their present
opportunities to strengthen their position in preparation for the national
elections, scheduled for October, 1957. Fart of the administrations tactics
to overcome these liabilities appear to be to enhance its position by expanding
Nepal's foreign contacts and associating the administration with a number of
prestige events such as the coronation, by playing host to important foreign
dignitaries such as President Prasad of India and numerous Asian leaders who
have been invited to attend the Fourth Conference of the Norld Fellowship of
Buddhists meeting in Kathmandu in November, by undertaking foreign tours such
as Tanka Prasad's racent visit to Peking, and by establishing diplomatic relations
with various countries including the USSR.
Although it is doubtful whether any of these policies can be carried out
without the endorsement of the King, Tanka Prasad's own personality and ambitions
also condition government decisions. It is important to remember that he spent
numerous years in jail under the Rana regime under very isolated conditions,
has little knowledge of the outside world or training for his present responsi-
bilities and was an unimportant politician until he was suddenly cast in the
role of a statesman who dealt at first hand with foreign representatives, and
could enjoy the rewards and pomp of office. It would be surprising if this
experience did not give him illusions of grandeur which are projected into his
concept of the position that Nepal can occupy in international councils.
Nepalese officials, very few of whom have travelled beyond India's
borders, are not well informed on events of recent years, on the strug le between
the free world and the Communist bloc and on the fate of small countries
bordering on the USSR and Mum Communist China which felt they could do business
with them. Although Nepalese leaders probably share the instinctive distrust
of apy small country for a large and powerful neighbor, they may not view Communist
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China with any greater suspicion than previous governments in control of the
country, Reports of Chinese repressive measures in Tibet undoubtedly have
trickled into Nepal but Nepalese history is replete with stories of brutality
and many Nepalese would not be shocked or alarmed by the excesses of an
authoritarian regime such as the CPR.
3. Probably the most important conditioning factor is the Nepalese
obsession with what they believe to be Indian ambitions in Nepal, Nepalese
officials harbor suspicions that India has designs on Nepal and wishes to merge
it in to India and several observers recently in Kathmandu have reported that
the mood of these officials is one of greater fear of the Gca than of the CPR.
This can be attributed to the more frequent clashes with India than with China,
to the traditional tension between bill and plains people, to recent contact
with COI officials and missions which have been characterized by a degree of
Indian arrogance, heavy-handedness and corruption and to frecuent reminders
appearing in the Indian press that Nepal is within India's sphere of influence.
40 A final factar of fairly recent origin is the apparently growing belief
on the part of some Nepalese officials that they can no longer look only to the
M. to coUnter-balance India and that Nepal should therefore turn to the CPR,
Nepalese leaders including Tanka Prasad have demonstrated a certain amount of
irritation over their belief that the U,S. and India collaborate too closely on
aid promams for Nepal, that the U.S., has ganged up with India against Nepal and that
India has some kind of veto power over U.S. activities in Nenal, Both USOM and
Embassy officers have attemoted to correct these misconceptions but the Nepalese
are not easily disabus(,d.
The inter-play of these various factors combines to give some substance to
Indian Ambassador Sahay's charges that the Nepalese deliberately encouraged the
Chicoms to establish a mission in Kathmandu and are engaged in a gradual reorien-
tation of palicy away from India,
For the Charge d'Affaires, aoi?:
? Alfred E, Wellons ,
First Secretary of Embassy
Enclosure:
NepalrCommunist Chiaa Agreement
cc: Calcutta
Hong Kong
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AGREE11;NT TO MAINTAIN THE FRIENDLY RE1ATIONS
BETWEEN THE KINGDOM 01, NEPAL AND THE PEOPIE IS REPUBLIC Cle CHINA
UNCLASSIF.MD
AND
;:ON TRADE AND INMCOURSE BEIWEEN NEAL AND THE TIBET REGION OF GEM
The Government of the Kingdom of Nepal and the people's Republic of
Chine, -being desirous of further developing the friendly relations between
the two countries as good neighbours on the basis of the long-standing
friendship between the two peoples
Reaffirm that tie Rive Principles (Parch Shila) of
10 Mutual respect for each obheres territorial integrity and
sovereii,nty,
20 Non-agig.ess ion,
3. Non-interference in each ot.heros internal affairs for any
roe-bons of an economic, political or ideological character,
L. Equality and mutual benetit,, and,
5. Peaceful coexistence,
should be the fundamental principles guiding the relations between the two
countries.
The two parties have resolved to conclude the present Agreement in
accordance with the above-mentioned principles and have for this purpose
appointed as their respective plenipotentiaries;
The Government of the Kingdom of Nepal, His Excellency Shri Maxie Prasad
Sharma, Minister for Foreign Affairs,
The Government of the people's Republic of China, His Excellency
Pan Teu-li, Ambassador Extraordinary and Plenipotentiary of the people's
Republic of china to the Kingdom of Nepal who, having examined each other's
credentials and finding them in good and due form, huve agreed upon the
followings
ARTMLE 1
The High Contracting Parties declare that peace and friendship shall be
naintained between the Kingdom of Nepal and the People's Republic of China.
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Desp. No. 548 ARTICLE II
From New Delhi - 10/31
The High Contracting parties hereby reaffirm their decision to mutually
exchange diplomatic representatives on ambassadorial level,
ARTICLE Ifl
All treaties and documents which existed in the past between Nepal and China
including those between Nepal and the Tibet Region of China are hereby abrogated,
ARTICLE IV
In order to maintainand develop the traditional contacts between Nepal
and the peoples of the Tibet Region of Chinas the High Contracting Parties
agree that the nationals of both parties may trade, travel and make pilgrimage
in those places bleach other's territory as agreed Upon by both parties, and
the two Parties agree to safeguard the proper interests of the nationals of
the other party in its territory in accordance with the laws of the country of
and for this purpose the High Contracting parties agree to does
follows,
paragraph I
The High Contracting Parties mutually agree to establish Trade Agencies,
1. The Chinese Government, agrees that the Goverment of Nepal may estab.
lish Trade Agencies at Shigatse, Kyertmg and Nyelam;
2, The Government of Nepal agrees that the Chinese Government may establish
an equal number of trade agencies in Nepal, the specific locations of which
will be discussed and determined at a later date by both Parties;
3. The Trade Agencies of both Parties shall be accorded the same status
and same treatment. The Trade Agents of both parties shell enjoy freedom
from arrest while exercising their functions, and shall enjoy in respect
of themselves, ti.eir wives and their children who are dependent on them
for livelihood, freedom from search.
The Trade Agencies of both parties shall enjoy the privileges and
immunities for couriers mailbags and communications in code,
paragraph II
The High Contracting Parties agree that traders of both countries may
trade at the following places:
1, The Chinese Government agrees to specify (1) Lhasa,
Gyantse and (I4) Tatung as markets for trade;
24, The Government of Nepal agrees that when with the development of Chinese
trade in Nepal, it has become necessary to specify markets for trade in
Nepal, the Government of Nepal will specify an equal number of markets for
trade in Nepal;
(2) Shigatses (3)
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From New .Delhi 14(3/(31
30 Traders -oath countries known to be customarily and specifically
engaged in border trade between Nepal and the Tibet Region of China may
continue trade at the traditional markets for such trade,
Paragraph III
The High Contracting Parties agree that pilgrimage by religious believers
of either country to the other may continue according to religious custom.
Personal baggages and articles used for pilgrimage carried by the pilgrims of
either par* shall be exempt from taxation by the other Party.
paragraph IV
For travelling across the border between Nepal and the Tibet Region of China,
the High Contracting Parties agree that the nations of both countries shall use
the customary routes.
paragraph V
For travelling across the border by the nationals of the two countries,
the High Contracting Parties agave to adopt the following provisions&
1, Dipldlatin personnel and officials of the two countries and nationals
of the two countries except those provided by sub-paragraphs 2, 3$ and 4
who travel across the border between Nepal and the Tibet Region of China,
shall hold passports issued by their respective countries and visaed by
the other party. Nationals of the two countries who enter the Nepal
or Tibet Region of China through a third country shall also hold passports
issued by their respective countries and visaed by the other Party.
2, Traders of the two countries known to be customarily and specifically
engaged in trade between Nepal and the Tibet Region of China, their wives
and children dependent on them for livelihood and their attenWants, not
covered by sub-paragraph 3 of this Paragraph, who enter into the Nepal
or Tibet Region of China as the case may be for the purposes of Trade
shall hold passports issued by their respective countries and visaed by
the other party, or Certificates issued by their respective Governments
or by organs authorized by their respective Governments.
3. Inhabitants of the border districts of the two countries who cross
the border to carry on petty trade, to visit friends or relatives or for
seasonal changes of residence, may do so as they have customarily done
heretofore and need not hold passports, visas or other documents of
certification.
4. Pilgrims of either Party who travel across the border between Nepal
and the Tibet Region of China for the purposes of pilgrimage need not hold
passports, visas or other documents of certification, but shall register
at the border checkposts or the first authorised Government office of the
other Party, and obtain permits for pilgrimage therefrom,
UNCIASSIFIE*
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From New iii315oRgatsgal%
the provisions of the foregoing sub-paragraphs of
this Paragraph, either- Government may refuse entry to any particular person.
6. Nationals of either country who enter the territory of the other Party
in accordance with the foregoing sub-paragraphs at this paragraph may stay
within the territory only after complying with the procedures specified
by the other Party.
ARTIGLS ?V
This Agreement shall be ratified. It shall come into effect after
mutual notice of ratifications, and remain in force for eight (8) Years.
Extension o the present Agreement may be negotiated by the two Parties if either
Party requests for it six (6) months prior to the expiry of the Agreement and
the request is agreed to by the other Party.
Done in Kathmandu on the 20th day of SVptember, l956 in duplicate
in the Nepalese, Chinese and English languages, all texts being equilly authentic*
Plenipotentiary of the Government Plenipotentiary of the Government
of the People es Republic of China of the gingdom of Nepal
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Encl. No, 1
Desp. No. 548
From New Delhi - 10/31
UNCLASSIFIED
September 209 1956
Excellency,
In the course of our discussions regarding the Agreement for the mainte-
nance of Friendly Relations between the People's Republic of China and the
Kingdom of Nepal and on Trade and Intercourse between the Tibet Region of China
and Nepal, the Delegation of the Government of the People's Republic of China
and the Delegation of the Government of the Kingdcel of Nepal agreed that certain
related matters be regulated by an exchange of notes, In pursuance of this
understanding, it is hereby agreed between the two Governments as follows:
The two Parties mutually agree to establish Consulates-General.
The Chinese Government agrees that the Government of Nepal may !establish
Consulate-General at Lhasa of the Tibet Region of China.
The Government of Nepal agrees that the Chinese Government may establish
Consulate-General at Kathmandu of Nepal, the date for the establishment of which
will be discussed and determined at a later date.
20 The Government of Nepal will be pleased to withdraw completely within
six (6) months after this exchange of notes its military escorts now in Lhasa
and other places in the Tibet Region of China, together with all their arms
and ammunition, The Chinese Government will pander facilities and assistance
in such withdrawal.
3. Nepalese nationals in the Tibet Region of China and Chinese nationals
in Nepal shall be subjected to the jurisdiction of the Government of the
country of residence, observe the laws and regulatiens of the country of
residence), pay taxes to that Government and respect the local. custom.
All civil and criminal cases or disputes in which nationals of one party
in the territory of the other may be involved, shall be dealt with by, the
Government of the country of residence.
4. The Government of either Party will protect and safeguard the person,
property and legitimate interests of the nationals of the other party in its
territory.
5.(a)
The Governments of the two parties agree that the nationals of either
Party in the territory of the other party, under the condition that they pay
rents according to market prices And sign contracts for lease with the house
owners on a mutually voluntary basis, may have the facility to rent houses.
(b) Nationals of either Party who have already rented houses in the
territory of the other party, under the condition that they pay rent according
to market prices and that contracts for lease are or have been concluded with
the house owners on a mutually voluntary basis, may continue tozent the houses.
6. Both Parties agree to adopt necessary measures to promote and expand the
trade relations between the two countries, and to levy customs duties on the
UNCLASSIFIED
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From New Delhi - 10/31
import 8.116 export comeoditiee of the two Parties in accordance with the favoured
tax-rates of each Government.
UNCIAS.511 jp
70 The rare of business engaged in by the tradere of either Party in the
territory on the other shall comply.with the relevant laws and regulations of
the Governeent of the country of residence,
8 The Nepalese erireiry School in Lhasa of the Tibet Region of China shall be
changed into a Primary School for children of Nepalese nationals and shall
complete registration procedures in accordance with the relevant regulations
of the Chinese Goverment.
90 The two parties agree to establish direct wireless telegraphic service.
between Lhasa and Kathmandu, the specific arrangements of which will be discussed
ane decided upon at a letter eate by the Government" of both parties, -
10. The Goverment of either ;party will assist the ConsuleteeGeneral and the
-Trade Agencies of the other in its territory in renting houses.
11. The Trade Agents of ?both parties mey, in accordance with the laws and regu-
lations of the country of residence, have access to their nationals involved
in civil or criminal cases,
12. The Trade Agents and traders of both countries may nire employees in the
13. Traders and pilgrims of both countries shall have the facilieey of hiring .
means of transportation at normal and reasonable rates,
11. The two parties agree that any person residing in the -Tibet Region of
China born of-parent:: holeine respectively the nationality of the Peoplets ?
Republic of China and the nationality. Of the Kingdom of Nepal and of eighteen
years ? of age or above, may, according to their own will, choose the nationality
of the PeePlegs liepublio of China for thenselvee and their children Who are
under ?the ? age of eighteen, by completing relevant procedures at the 'Chinese
Government, f.fter the completion- of the above-mentioned procedures, they
and their children under the age of eighteen shall be considered to h..0/e lost
automatically the nationality of Nepal,
If the Governeerit of the Kingdom of Nepal agrees to the present Note,
the present Note alone With Your eeccellency's 'reply shall become an?agreement
between our two Governments which shall cora into force Upon the exchange of
the present Note and your excellencyve reply.
I avail myself of. this opportunity to express to Your Excellency the,
assurances of my highest. consieeratione
Arbaesador Extraordinary and Pleni-
potentiary of the eeople es Republic
of China to the Kingdom of Nepal.
His Excellency Ni'. Chuda pra6at, Sharma,
eireLster for Foreign Affairs of the Kingdom of Nepal,
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From New Delhi - 10/31
uuctlic71L-Tirr
Translation of the reply .by the Nepal anister of Foreign Affairs
to the Chinese Ambassador's note of Septedber Mb, copied above:
"Kathmandu,
leltellber 20, 1956.
,r4
rrour Excellency,
-
note
"I have the honour to acknowled7e receipt of Your Excellency's
of tember 21, 195(2 which reads as follous:
".....(herein is quoted ne ()Aire note from the Red Chinese
Anbassador)
"In behalf of the 1-1-.-ernment of the Kingdom of Repel, I hereby
amine to your Excellency's note, Your Excellency's note, alonguith
this rPlly, shall 'peeorr an Agreement between ourtuo governments
uhich shall cons into force unon the exchange of the present notes.
-I avail dr-elf of this opnortunity to ex-Press to Your rxcellency
the'agstrenles of m7 t.i-hest consideration.
4/0/ Chuda Prasad Sharma
'Allister -for Foreign Affairs
Kingdom of Nepal
"His Tx-ceIleney
Mr. Pan T711,-li
Ambassador rxtraorclinart and
Plenipotentiary of the People's
Tlepbblic of China to the
Kingdom of Nepal."
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