Beijing, July 11: China and Nepal have agreed to enhance bilateral political ties and boost cooperation in border trade, tourism and transportation, the state media reported today. "China and its western neighbour Nepal should and will have still closer ties," Chinese president Jiang Zemin told visiting Nepalese King Gyanendra Bir Bikram Shah Dev here yesterday.
Jiang, who is also general secretary of the ruling Communist Party of China (CPC), encouraged more exchanges between Tibet autonomous region and Nepal, 'China daily' said.
The two sides signed an agreement on trade and related issues between the Tibet autonomous region and Nepal, replacing an earlier treaty which had lapsed.
According to the agreement, the two sides will make full use of the Lhasa-Kathmandu highway on a reciprocal basis to improve passenger and cargo transport, and promote cooperation between the two countries in trade, tourism and other fields.
It said that both sides should protect the safety of nationals of either side and ensure their legal rights.
The agreement also includes measures to facilitate pilgrimages and to protect wild animals and plants near the Chinese-Nepalese border.
According to the Chinese Foreign Ministry, it was the second time that China and Nepal had signed such an agreement on trade and related issues. The first such agreement was signed in 1956.

Bureau Report