Wednesday, July 05, 2006

Historic India-China link to open

China and India are due to open a historic trade route on Thursday that has been closed for 44 years. The Himalayan pass of Nathu La, 4,000m (14,000 feet) above sea level, was once part of the ancient Silk Road. It links the Indian state of Sikkim with Tibet and was the scene of a fierce two-month border war between India and China in 1962. Nathu La is opening just a few days after the first train service was launched from eastern China to Tibet. The opening ceremony at the border post is to be attended by China's ambassador to India as well as local officials from Sikkim and Tibet.

The BBC's South Asia correspondent, Navdip Dhariwal, says the reopening of the route signifies a huge leap forward in diplomacy and trade between both countries. Workers on both sides have been frantically laying stones and tarmac in preparation for the historic opening, under the watchful eye of Indian and Chinese border guards. Optimistic local traders have welcomed the opening and say it will have a major impact on the regional economy. "Our lives are going to change once trade gets going," a grocery supplier, Sonar Bhutia, is quoted as saying by the AFP news agency. "We're hoping to profit by it." but correspondents say the opening is more symbolic than substantive, with trade confined to some local goods. India will import 15 items from China, including goat and sheep skins, yak tails and raw silk. China, for its part, will import 29 items including tea, rice and spices. "Trading will take place four days a week, Monday to Thursday," says Sikkim director of industries, Saman Prasad Subba. Diplomatic triumph
Some analysts believe that trade through the land route could generate millions of dollars in trade eventually. But at the moment most agree that there are more immediate political benefits rather than economic. "This resumption of border trade is more significant for Indian diplomacy, not for trade," says Jayantanuja Bandopadhyay, professor of international relations in Calcutta's Jadavpur University. Sikkim is a former Buddhist kingdom that merged with India in 1975, a move that was opposed by China which lay claim to the state. "By allowing trade through Nathu La, China has accepted Sikkim as part of India that it refused to do earlier," Mr Bandopadhyay says. The Nathu La pass was closed in 1962 after war broke out between China and India. The famed Silk Road was an ancient trading route that once connected China with India, West Asia and Europe.

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