Wen Jiabao yesterday agreed to increase economic aid and support Nepal’s fragile peace process, during the first visit by a Chinese premier in more than a decade to the small Himalayan nation where Asian giants China and India compete for influence. Wen and his Nepali counterpart oversaw the signing of several agreements promising money for infrastructure projects to help rebuild the Himalayan nation, which has struggled to find its feet since a decade-long civil war ended in 2006. Ahead of Wen’s visit, which was a brief stopover on his way to the Middle East, dozens of Tibetans were held by Nepali police for entering the country illegally from India. “This visit has qualitatively raised the cordial ties between the two countries,” Nepali Foreign Minister Narayankaji Shrestha told reporters. Separately, a Chinese Foreign Ministry spokesman said that special representatives from China and India will meet in India from Sunday to Tuesday to discuss border issues, the official Xinhua news agency reported. China pledged to increase its annual economic development aid to Nepal to about 200mn yuan ($32mn) from the current level of 150mn yuan, officials said. It will also provide a one-time special grant of $20mn. “As a close neighbour of Nepal, the Chinese side is pleased to see the progress achieved in the peace process in Nepal and sincerely hopes that Nepal will realise peace, stability and prosperity, including the drafting of a new constitution in the near future,” a joint statement said. Wen had been scheduled to visit Nepal in December, but postponed the tour at the last minute amid speculation over security concerns and fears of Tibetan exiles organising anti-China protests. Nepal works as a buffer between China and India. Both giants jostle for geopolitical influence over their small neighbour, which has huge potential to generate hydroelectric power. India has always seen Nepal as part of its strategic sphere of influence. But that has been challenged since the election of Maoist leader Prachanda as prime minister. Before he resigned in 2009, he had edged Nepal closer to Beijing, making China his first foreign port of call instead of India. Kunda Dixit, editor of the Nepali Times weekly, said China could press Nepal for control of activities by Tibetan refugees against Beijing. “For China, they want stability in Nepal so that it does not become a springboard for Tibetan nationalism,” Dixit said. Nepal, home to more than 20,000 Tibetans, is under pressure from Beijing to crack down on any “anti-China” activities. Kathmandu considers Tibet a part of China and says the Tibetans are free to stay but must not engage in protests against China. Nepal must prepare its first republican constitution by May as part of a peace deal with the former Maoist rebels that ended the conflict that killed more than 16,000 people. But the country, whose economy is largely dependent on aid and tourism, has missed several deadlines due to political standoffs. Wen is flying on to Saudi Arabia, the United Arab Emirates and Qatar. He will also attend the Fifth World Future Energy Summit in Abu Dhabi. In a commentary, Xinhua said Wen’s trip to the three Arab countries was of particularly “great significance”. “Both China and the Arab world have the common task of warding off the negative impact of the global economic malaise,” Xinhua said. Reuters