Ratification of MCC is Nepal’s sovereign decision says US as China fumes

Kathmandu, Feb 19 (PTI).  A day after China alleged that the US was pursuing “coercive diplomacy” in Nepal, the US embassy here said the USD 500 million infrastructure grants programme under the Millennium Challenge Corporation (MCC) is a “gift” to the Himalayan nation and emphasised that a decision whether to accept or reject the pact was its “sovereign decision”.

Nepal’s political parties are sharply divided on whether to accept the US grant assistance under the MCC agreement, which is under consideration in the House of Representatives. Nepal’s Leftist political parties have been opposing the pact, saying it was not in national interest and that it was meant to counter China. On Friday, Chinese Foreign Ministry spokesman Wang Wenbin said that China is glad to see international assistance to Nepal but it should come without any political strings attached.

We oppose coercive diplomacy and an agenda based on selfish interests at the expense of the sovereignty of other countries, Wang said in Beijing. Reacting to China’s statement, the US embassy said, whether Nepali leaders ratify MCC is a decision for Nepal to make, as a sovereign democratic nation, and Nepal’s decision alone. “The USD 500 million MCC grant is a gift from the American people and a partnership between the two countries that will bring jobs and infrastructure to Nepal and improve the lives of Nepalis”, the US embassy statement said. “This project was requested by the Nepali government and the Nepali people and designed to transparently reduce poverty and grow the economy of Nepal,” it said.

It noted that the year 2022 marks the 75th year of bilateral ties between Nepal and the United States. During these 75 years, Nepal has seen monumental changes.
“We have stood with Nepal through these changes and supported the country with development aid, disaster response and preparedness assistance, health and education programmes, and more,” reads the statement, adding that “whether Nepali leaders ratify MCC is a decision for Nepal to make, as a sovereign democratic nation, and Nepal’s decision alone.”

Last week, the US reportedly asked Nepal to ratify the proposed grant assistance under MCC by February 28, saying if Kathmandu did not accept the programme, Washington would review its ties with the Himalayan nation and consider China’s interests behind its failure. The US embassy in Kathmandu, however, denied media reports that it had warned Nepal over the issue of MCC. “We are a strong supporter of free speech & public discourse based in fact, including on MCC. The right to express one’s views is intrinsic to democracy, and people must be allowed to peacefully share their views. Violence & incitement to violence are never acceptable,” US Ambassador to Nepal Randy Berry tweeted on Friday.

Nepal and the US in 2017 signed the MCC agreement, meant for building Nepal’s infrastructure such as electric transmission lines and improvement of national highways. The session of the House of Representatives on Friday also concluded without the controversial proposed MCC being tabled in Parliament due to a lack of consensus among the ruling coalition partners.

Although the ruling Nepali Congress (NC) has decided to endorse the MCC through Parliament, other ruling alliance members including CPN-Maoist Centre led by Prachanda and CPN-Unified Socialist led by Madhav Kumar Nepal have expressed their reservations. The MCC is a bilateral United States foreign aid agency established by the US Congress in 2004.