UPDATE DETAILS OF PARTY MOVES AFTER PRESIDENTIAL CALL Kathmandu, 24 Nov.: Main opposition NC which has laid a claim to the leadership of a national consensus government has convened a meeting of leaders to fix an agenda for talks with other parties following Friday’s presidential call. A meeting has been convened with UML. Maoist central secretariat meet has started to which standing committee members have been invited. nnnn DISQUALIFIED MAOIST FIGHTERS COME IN PROTEST IN JHAPA Kathmandu, 24 Nov.: Disqualified former Maoist combatants Saturday came out in Jhapa pressing demands by disrupting the movement of vehicles. The former fighters, mostly child soldiers, were disqualified by a UN body during verification. The former soldiers are demanding the removal of the disqualified tag, withdrawal of a case filed at court by opposition parties protesting government grant of Rs.200,000 secretly offered to them and other demands. Opposition said the government dole will tantamount to official recognition of child soldiers violating human rights. Nnnn KP OLI RETURNS SUNDAY Kathmandu, 24 Nov.: Top UML leader KP Sharma Oli returns from New Delhi Sunday, an aide said. He was airlifted to New Delhi 4 November for the treatment of pneumonia. Nnnn RARE BUDDHA IDOLS TO GO ON DISLAY IN CHINA Kathmandu, 24 Nov.: Rare idols of The Buddha will go on Display at major cities in China. The tour to be organized by Department of Archaeology became possible after cabinet Friday okayed a request to take the rare idols out of the country. nnnn i CHINESE SCHOLAR HOPEFUL NEW LEADER XI HOPEFULLY WILL VISIT NEPAL SOON Kathmandu, 24 Nov.: Nepali politicians are not well acquainted with the new leadership in China. Yet, when Xi Jinping was named head of the Communist Party of China (CPC) last week, Nepali politicians, be it from the ruling parties or the opposition, did not wait to send their congratulatory messages to the new Chinese leadership, Purna Basnet writes in Republica from Hong Kong.. The alacrity with which Nepali politicians sent greetings to Xi, who is all set to replace Hu Jintao as China´s new president in March next year, has left Beijing hopeful of more support from Nepal to maintain peace in Tibet. Beijing-based South Asia experts believe that Xi will thrash out strategies to resolve the Tibet crisis by developing a new relationship with Nepal. Prof Ma Jiali, executive deputy director at Centre for Strategic Studies (CSS), a government think tank, believes that messages from Kathmandu reflected its ´one China policy´. “The new Chinese leadership must feel encouraged by Kathmandu´s renewed commitment for endorsing whatever policy Beijing formulates on Tibet and Taiwan,” Prof Ma, one of China´s well known South Asia experts, says. “Nepal is strategically important to China because of Tibet. Hence, Xi will do something for Nepal.” Prof Ma is a member of China-India Track to Dialogue and is also associated with China Institute of Contemporary International Relations (CICIR), a think tank operated under China´s state council. He is hopeful that Xi will made state visits to some important neighboring countries including Nepal soon after taking over as China´s next president. “As he has better understanding of South Asia, Xi will hopefully visit Nepal, too,” he said. While addressing the eighteenth national congress of the CPC two weeks ago, China´s president Hu Jintao had stated that the new Chinese leadership ought to cement China´s relationship with neighboring countries by ensuring that they benefit from China´s economic prosperity. Soon after Xi emerged as China´s new leader, Yang Houlan, China´s ambassador to Nepal, had made it clear that the Chinese investment in Nepal would grow in the coming years. Prof Wang Hong-wei of the Institute of Asia-Pacific Studies says that the new Chinese leadership will give high priority to strengthening its diplomatic relationship with neighboring countries, including Nepal, in accordance with its policy of placing Tibet and Xinjiang at the center of its diplomacy. “The new Chinese leadership will build a strong relationship with Nepal in various sectors, including security,” said Prof Wang. “China´s focus on neighboring and developing countries is part of its larger goal of changing the existing world order.” Hu Shisheng, Director of Institute of South & Southeast Asian and Oceanic Studies at CICIR, views China´s focus on neighboring countries as an attempt to counterbalance the US influence in Asia. “In the face of China´s rise, world powers´ competition over increasing their influences in Asia could lead to tensions,” said Hu. “Therefore, it is natural that China will focus more on its neighboring countries.” Beijing is currently feeling the heat created by the increasing US influence in the East and Southeast Asia. In addition, increasing incidents of self-immolations by the supporters of the Dalai Lama have put Beijing on a tight spot. “In the years to come, China will have to face more challenges from its western regions like Tibet and Xinjiang than any other region,” said Hu. “Therefore, the new leadership will definitely want to build strong relationships with Nepal which shares border with Tibet.” Hu added, “Given that hundreds of Tibetans flee China through Nepal every year, it is not possible to maintain political stability in Tibet without Nepal´s support. Therefore, Nepal is a key nation to China regarding Tibet.” While Hu Jintao´s term revolved around Taiwan, Xi´s tenure as China´s leader is expected to have Tibet at the center, which signals that Nepal will figure more prominently in China´s foreign affairs in the days ahead. Nnnn INDIA’S GMR WORRIED BY CPN-MAOIST THREAT Kathmandu, 24 Nov : Indian power developer GMR, which is also the promoter of the 900MW Upper Karnali Hydropower Project, has expressed grave concern over the recent decision of the CPN-Maoist to launch “ "strugg”e" against projects being developed by Indian companies, Bhoj Raj Pokhrel writes in Republica. "GMR has expressed its concern in writing," a source at the prime minister´s office told Republica, adding the Indian company has asked the government to pay serious attention to the CPN-Maoist decision and provide adequate security at the project site. As per the agreement with the government, the Indian company has to complete the Upper Karnali Hydropower Project by 2016. The Bheri-Karnali state committee of the CPN-Maoist has decided to form a security squad to chase away GMR officials. According to Kalendra Sejuwal, Surkhet based reporter of Republica, the state committee took such a decision to safeguard the sovereignty of the countr“. "The party has been keeping a close eye on projects that have been awarded to Indian companies," Sejuwal said quoting Bharat Bam, secretary of the Bheri-Karnali state committee of the CPN-Maoist. Meanwhile, Pampha Bhusal, spokesperson for the CPN-Maoist said the party was totally again“t "projects that do not serve national intere”ts". She further added that the people of Karnali are against the project and that the party supports the“. "The project was awarded to GMR without competitive bidding. Also, the company does not aim to run the project in full capacity. Upper Karnali can generate more than 4,000 MW of hydroelectricity project," she told over phone to Republica. The GMR also has forwarded its letter to the Investment Board of Nepal (IBN). The IBN, however, has so far not responded to GMR´s concern.“ "The IBN has not yet responded as how it would protect the project from the so-called nationalists," said an official at the prime minister´s office. Radesh Pant, CEO of IBN could not be contacted for comments despite several attempts. The government has awarded Upper Karnali Hydropower Project to GMR under the build-own-operate-transfer (BOOT) model. Additionally, other foreign power developers also have expressed concern over the situation in the country. "Other developers have not come up with formal letters but they also share similar concerns," said the official. Nnnn MORE REACTION TO PREDENTIAL ACTION Kathmandu, 24 Nov.: President Ram Baran Yadav’s call today to pick a consensus prime minister within a week has generated mixed reactions among parties, with parties in opposition too quickly hailing the move and Madhes-based political forces reacting a bit warily, The Himalayan Times writes.. Nepali Congress and CPN-UML, which have long been calling for Prime Minister Baburam Bhattarai’s resignation, welcomed the President’s move, saying this is ‘the only way out’ and that parties will reach consensus by the given deadline. “I welcome the call made by the President in capacity of the guardian of the Interim Constitution, and I believe political parties will reach consensus within the given deadline,” said NC Chief Sushil Koirala, adding, UML leader Bhim Rawal termed President’s move ‘a natural step’ in view of political parties’ failure to reach a compromise. “If leaders can rise above personal and partisan interests, a new consensus government is possible within a week,” said Rawal. Madhes-based political forces, however, were cautiously optimistic. Sarvendranath Shukla, Vice-chairman of the Tarai Madhes Democratic Party, said the President’s call for a consensus government was part of his ongoing efforts to help reach compromise but added that it would not easily change the hearts of leaders of major parties — the UCPN-M, NC and UML. “An agreement among major forces on fresh assembly polls is a must. And I don’t think it will be that easy,” said Shukla, adding that if parties fail to agree on a candidate to replace Prime Minister Bhattarai, situation could turn more complicated as the President cannot invoke Article 38 (2), which calls for choosing a new prime minister on majority basis. Shukla added that any compromise among major forces could be possible only when the rival factions — NC and UML and UCPN-M and Madhesi parties — can narrow down their differences on the issues of election. “The UCPN-M and United Democratic Madhesi Front believe if NC and UML form a government, they could delay the election and dilute issues of federalism,” said Shukla. “On the other hand, NC and UML fear that if the election is held under the UCPM-M government, they could dictate their terms on federalism in the next assembly.” Vice-chairman of Madhesi Janaadhikar Forum-Democratic, Rameshwor Roy Yadav said if NC, UML and UCPN-M failed to agree on a prime ministerial candidate, they should give UDMF a chance. Sadbhawana Party Chairman Rajendra Mahato said the President’s initiative will help forge consensus but said parties must agree on modalities for formation of a government and holding the election. National Madhes Socialist Party Chairman Sharat Singh Bhandari, issuing a press release, said the new move would help build environment of trust among political parties. Nnnn LOAN AGAINST SHARES RISES Kathmandu, 24 Nov.: The bullish stock market has increased the amount of loans against shares extended by commercial banks, even though the banks have not participated in margin type lending through brokers, The Himalayan Times reports. The amount of loans floated by commercial banks increased by almost 24 per cent in the first quarter of the current fiscal year, in comparison to the amount floated at the end of last fiscal year, according to the unaudited figures of the banks. The portfolio of such margin type loans increased by more than Rs one billion, in the review period. By the end of the first quarter, banks have lent Rs 6.17 billion against the collateral of shares. The amount stood at around Rs 4.97 billion by the end of last fiscal year. In the first quarter of the current fiscal, share prices have increased substantially as the Nepse index has appreciated by 20 per cent. Earlier, when the stock market was not doing well, banks were apprehensive about keeping shares as collateral due to the fear of not being able to recover the principle sum. However, rising share prices have appreciated the value of the collateral for banks. Despite the market being lucrative at present, commercial banks have yet to start margin type lending based on brokers’ guarantee, which was introduced in July. “There are about 15 financial institutions actively involved in providing loans against shares based on brokers’ guarantee, but there are no commercial banks involved,” said managing director of Kohinoor Investment –– a brokerage house –– Bharat Ranabhat. “But of late, some commercial banks seem to be interested and might start lending soon,” he added. According to new provisions, financial institutions provide 60 per cent of the amount required to buy shares, while 40 per cent has to be furnished by the investors themselves. The financial institutions have an agreement with brokers to furnish the proof and amount of purchase by investors who obtain 60 per cent amount the very next day. Earlier, banks provided loans only if the investor furnished a share certificate, had made full payment for the share, and had got it transferred. “The scheme has become popular among investors and half of total transactions in our brokerage has increased due to margin type lending,” said Ranabhat. Financial institutions are charging 12 per cent to 16 per cent as interest rate for loans against shares. nnnn