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Highway Construction Agreement,
Peking, October 15, 1961.

THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA AND HIS MAJESTY’S GOVERNMENT OF NEPAL,

IN PURSUANCE of the Treaty of Peace and Friendship between the two countries and

FOR the purpose of further developing the friendly relations and economic intercourse between them,

HAVE agreed to construct a highway from the Tibet Region of The People's Republic of China to Kathmandu of the Kingdom of Nepal and

HAVE concluded the present Agreement, the articles of which are as follows:

Article I

The Government of the People's Republic of China shall be responsible for constructing the section of the highway from the Tibet Region of the People's Republic of China to Kathmandu of the Kingdom of Nepal, which is within Chinese territory, and His Majesty's Government of Nepal shall be responsible for constructing the section, which is within Nepalese territory.

At the request of His Majesty's Government of Nepal, the Government of the People's Republic of China shall, within the period from July 1, 1962 to June 30, 1966, grant economic aid in installments to His Majesty's Government of Nepal without compensation and without any conditions or privileges attached for use in construction, the section of the highway which is within Nepalese territory. The amount of the aid is 3,500,000 pounds sterling.

Article II

Within the amount of the above aid, the Government of the People's Republic of China shall supply His Majesty's Government of Nepal with assistance including the following:

1.                  Sending of experts and technicians, and the supply of technical assistance;

2.                  Supply of the necessary machines and materials for the 'Construction of the highway;

3.                  Assistance in the training of technicians and skilled workers of the Kingdom of Nepal.

 Article III

The arrangements accorded to the experts and technicians dispatched by the People's Republic of China to the Kingdom of Nepal and of the trainees rent by the Kingdom of Nepal to the People's Republic of China shall be made in accordance with Article 4 of the Agreement on Economic Aid between the Government of the People's Republic of China and His Majesty's Government of Nepal signed in Peking on March 21, 1960.

Article IV

 After on-the-spot surveys have been conducted by experts dispatched by the People's Republic of China, the two governments shall designate representatives to discuss and decide on the route of the above highway, its construction programs and method of concrete implementation, and the installment drawings on the aid, and sign a relevant protocol.

 Article V

 This Agreement shall come into force on the date of its signing.

 DONE in duplicate in Peking on the 15th day of October 1961, in the Chinese, Nepalese and English languages, all three texts being equally authentic.

Sd/-                                                                                          Sd/-

CHEN YI                                                                                TULSI GIRl

Plenipotentiary of the People's                           Plenipotentiary of His Majesty's

Republic of China.                                                        Government of Nepal.

 
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