(AFP) - 08 September 2009

KATHMANDU - Nepal has asked China for a one billion dollar loan to develop
infrastructure in the desperately poor country, the foreign minister said
Tuesday as she left for Beijing on an official visit.

Sujata Koirala said the money would be used to build roads, bridges, power
plants and a new international airport in Nepal, which is still struggling
to recover from a 10-year civil war that ended in 2006.

"The government of Nepal approached China for a soft loan of around one
billion dollars for development activities," Koirala told reporters at
Kathmandu airport.

"We have already received a warm response from the Chinese government."

Koirala, who will spend six days in Beijing ahead of a planned visit by
Nepal's prime minister, said Chinese concerns about protests by Tibetan
exiles here would also be on the agenda.

Nepal, home to around 20,000 exiled Tibetans, supports Beijing's "One China"
policy that views Tibet as an integral part of China as it seeks to preserve
friendly ties with its northern neighbour.

"We are very serious about this issue. We will reiterate our One-China
policy and reassure them that we won't allow and tolerate any anti-China
activities in our country," said Koirala.

"This is a goodwill visit aimed at strengthening political, economic and
cultural ties with our friendly neighbour."