PM, PRESIDENT MEET Kathmandu, 27 June: Prime Minister Baburam Bhattarai is currently holding consulting with President Dr. Ram Baran Yadav after his return from Brazil Monday. The government chief is briefing the ceremonial head of state his Brazil visit to address a UN-sponsored meet on sustainable development. The prime minister and president are meeting at a time when the president is being asked by some quarters to find an outlet to a political deadlock by replacing a ‘caretaker’ government. The president said he’ll stay within constitutional norms and act as Maoists are wary of any presidential move to replace Bhattarai. nnnn TOP CHINESE PARTY OFFICIAL ARRIVING TO REVIEW SITUATION Kathmandu, 27 June: Ai Ping, known as the point man in the Communist Party of China (CPC) on South Asian affairs, is set to arrive in Kathmandu later this week to assess the political situation here. Ai is vice-minister at the International Department of the Central Committee of the CPC, The Kathmandu Post reports. This will be the first high-level visit from the north since the dissolution of the Constituent Assembly on May 27. On May 31, the Chinese Embassy in Kathmandu said Beijing sincerely hoped that political forces in Nepal would continue to pursue consensus through dialogue and consultation and work together to promote political stability and economic and social development. “As a friendly neighbour, China is closely watching the development of Nepal's political situation,” the Chinese Embassy said in a statement. “China attaches great importance to developing a friendly and cooperative relationship with Nepal and supports efforts made by the Nepali side to safeguard its independence, sovereignty and territorial integrity, and in striving for peace, stability and prosperity,” the statement read. Ai is a familiar face in Katmandu's political circle and will hold a series of talks with various political leaders, according to sources. Ai will be accompanied by a couple of CPC officials. Although his itinerary has yet to be set, he is likely to meet President Ram Baran Yadav, Prime Minister Baburam Bhattarai and top leaders of the major political parties. "One of the important factors that have constituted the strong foundation of China-Nepal relations is that we firmly support each other on issues regarding each other's core concerns," Ai had said in an interview with The Kathmandu Post last September. "To take the Tibet issue for example, it is not only a matter concerning China's sovereign and territorial integrity but also the internal security of Nepal, as well as common security and strategic interests of the two countries. We appreciate efforts made by all Nepal governments that have been upholding the one-China policy and firmly support China on such issues as Taiwan and Tibet. We hope Nepal will keep its firm support on that as it always does," he had said. Nnnn HUGE FLIGHT OF NEPALI CURRENCY NOTES TO TIBET Kathmandu, 27 June: It has been revealed that a significant volume of Nepali rupee is being taken to Khasha, China, through the Tatopani customs point, although the currency is not exchangeable in China, Rishi Ram Poudyal writes in The Kathmandu Post from Tatopani.. Banks and the Tatopani Customs Office have reported that Rs 30 million is moving out of the country every day on an average. About Rs 1 billion is being withdrawn by Chinese traders every month from banks operating in Tatopani. “Chinese nationals visit banks with bearer cheques for withdrawal. We can’t deny payment if the accounts concerned have enough balance,” said a bank’s branch manager. “The rate of withdrawal is high, but we are unaware why the withdrawals are taking place.” Another bank official said Rs 10 million is being withdrawn daily from his bank. “The trend has increased notably over the last six months,” he said. While importing goods from China, payment is made in US dollars and imports are recorded. But in this case, there are no records of imports. This suggests that the payment is being made for other hidden reasons. “Even if goods are imported by paying Nepali currency, at least there should be records of duty payment,” say customs officials. Customs officials speculated that Chinese traders might be using Nepali currency to purchase Yarshagumba from Dolpa residents. But banks say Yarshagumba might not be the sole reason as withdrawals have increased immensely over the last year. According to the Nepal Rastra Bank (NRB), the existing foreign exchange law forbids the movement of Nepali currency to China. “It is illegal to take Nepali currency to Khasa,” said Bhasker Mani Gnawali, spokesperson for NRB. Nepali banknotes that are taken to Khasha must come back, as Nepali rupee is not exchangeable in China. But bank employees said the currency is not coming back, creating crisis in banks. Banks are even failing to meet withdrawal demand, they said. With this increasing trend of currency outflow to Khasa, the customs office has started keeping records of transactions. “We keep records of Chinese taking amounts exceeding Rs 200,000,” said Nirmal Hari Adhikari, chief at Tatopani Custom. “Although there is no clear law, we are keeping records on our own.” There has also been a significant rise in police seizures of Nepali banknotes being taken to China. Police seized Rs 4.9 million from Bandew checkpoint in Sindhupalchowk in March. Likewise, Rs 1.5 million was seized from from Araniko Highway in May. nnnn