Agreement on Trade, Intercourse and Related Questions between Tibet Autonomous Region of China and Nepal,
Peking,  May 2,   1966.

THE Government of the People's Republic of China and His Majesty's Government of Nepal,

BEING desirous of further developing the friendly and good neighborly Relations between the two countries,

REAFFIRMING the five principles, i.e.,

1.      Mutual respect for each other's territorial integrity and sovereignty,

2.      Mutual non-aggression,

3.      Non-interference in each other's internal affairs for any reasons of an economic, political or ideological character,

4.      Equality and mutual benefit, and

5.      Peaceful co-existence,

As the fundamental principles guiding the relations between the two countries,

DESIRING to develop on the basis of these principles the traditional friendly relations between the peoples of the two countries and

PARTICUI.ARLY between the inhabitants of the Tibet Autonomous Region of China and the people of Nepal,

HAVE agreed to conclude the present Agreement

ON the basis of the "Agreement to Maintain the 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" signed by the two Governments on September 20, 1956

AFTER friendly consultations, the two Governments

HAVE agreed upon the following:

Article I

The two Governments agree that the movement of persons between the Tibet Autonomous Region of China and Nepal shall be governed by the following provisions:

1. Diplomatic personnel, civil servants and other nationals (except those covered by paragraphs 2, 3, 4 and 5 of this Article) of either country shall hold passports issued by their own country and visaed by the other country. Nationals of either country entering the Tibet Autonomous Region of China or Nepal via a third country shall also hold passports issued by their own country and visaed by the other country.
2. Traders of either country known to be, customarily and specially engaged in trade between the Tibet Autonomous Region of China and Nepal (not being those persons covered by paragraph 3 of this Article), their wives and children dependent upon them for livelihood and their attendants shall hold passports issued by their own country and visaed by the other country or other certificates issued by their own Government or its duly authorised agency.
3. Inhabitants of the border districts of either country who proceed to the border districts of the other country to carry on petty trade, to visit friends or relatives, or for seasonal change of residence, need not have passports; visas or other certificates, but shall register at the border check post or the first encountered duty authorised government agency of the other country.
4. Religious believers of either country who travel for the purpose of pilgrimage need not have passports, visas or other certificates, but shall register at the border check-post or the first encountered duly authorised government agency of the other country and obtain permits for pilgrimage.
5. Porters and muleteers of either country shall only hold certificates valid for a period of not more than one year issued by the local government of their own country or by its duly authorized agency and register at the border check-post of the other country and need not have passports or visas.
6. Border inhabitants of both countries while traveling across the border shall use the customary routes.
7. Government officials, pilgrims and traders of both countries shall have the facility of engaging the means of transport at normal and reasonable rates.
8. Notwithstanding the provisions of the foregoing paragraphs of this Article, either Government may refuse entry in its territory to any particular person, should it deem this necessary.
9. Nationals of either country who enter the territory of the other country in accordance with the foregoing paragraphs of this Article may stay within the territory of the other country only after complying with the procedures specified by the other country.
    

Article II

The two Governments agree that pilgrimage between the Tibet Autonomous Region of China and Nepal shall be maintained, and for this purpose have agreed on the following provisions:

1. The local authorities concerned of either country shall suitably facilitate the entry into or departure from its territory of pilgrims from the other country.
2. Pilgrims of either country entering or leaving the territory of the other country shall comply with procedures specified in Article I paragraph 4 of the present Agreement.
3.  The personal luggage and articles used for pilgrimage, carried by pilgrims, shall be exempted from duties by both Governments.
    

Article III

Subject to the procedures to be mutually agreed upon, the two Governments agree to make full use on a reciprocal basis of the Lhasa-Kodari and Kathmandu-Kodari Highways to develop friendly intercourse between the two countries in respect of official and trade purposes.

Article IV

In order to ensure the peaceful living and normal pursuits of either country's nationals in the territory of the other and promote the development of friendship between the two countries, the two Governments have agreed on the following:

1. The respective Governments shall protect the life, property and legitimate interests of the nationals of the other country in its territory.
2. Nationals of one country in the territory of the other shall be subject to the jurisdiction of the Government of the host country and abide by its laws and regulations, pay taxes and respect the local customs.
3. All civil and criminal cases or disputes in the territory of either country involving nationals of the other country shall be handled by the Government of the host country.
    

Article V

The two Governments shall encourage and support the development of trade relations between the Tibet Autonomous Region of China and Nepal. The authorities concerned of either country shall protect the legitimate interests of the traders of the other country in its territory and facilitate their business activities. The traders of either country in the territory of the other must abide by the relevant laws and regulations and shall be subject to the jurisdiction of the host country.

The two Governments should promote traditional petty trade across the border between the Tibet Autonomous Region of China and Nepal. The local authorities concerned should give facility and protection to the border inhabitants of the other country engaged in such normal petty trade based on barter.

Article VI

The Government of the People's Republic of China agrees to the establishment of a Consulate-General in Lhasa by His Majesty's Government of Nepal.

His Majesty's Government of Nepal agrees to the establishment of a Consulate-General in Kathmandu by the Government of the People's Republic of China.
 

Article VII

In order to strengthen the friendship between the local officials of the two Governments and settle in time problems arising in the intercourse between the border inhabitants of the two countries, the local officials of the border districts of the two Governments may hold meetings as and when necessary.

The rank, time, place and other matters concerning each meeting shall be decided through consultation between the local officials concerned of the two Governments themselves.

Article VIII

The present Agreement abrogates the "Agreement to Maintain the 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" of September 20, 1956 and also the letters exchanged on the same date in relations to the same Agreement.

The present Agreement shall come into force on the date of its signing and shall remain in force for a period of ten years. Amendment or extension of the present Agreement may be negotiated by the two Governments six months before its expiration, if either Government proposes to amend or extend the present Agreement and obtains the consent of the other Government

DONE in duplicate in Peking on the 2nd day of May, 1966, in the Chinese, Nepali and English languages, all texts being equally authentic.

Sd/-                                                                                         Sd/-

Plenipotentiary of the                                                                Plenipotentiary of

Government of the People's                                                      His Majesty's

Republic of China.                                                                    Government of Nepal