Kathmandu: Asserting that the Himalayan Kingdom will not allow its territory to be used against India, Nepal today (Dec 21, 2003) said both sides must ensure that the open border is not used by "undesirable" elements to create violence and instability.

"We both must make sure that open border is not used by undesirable elements to create violence and instability," Nepalese Finance Minister Prakash Chandra Lohani said in his inaugural address at a workshop on "Indo-Nepal Economic Cooperation" in Kathmandu.

He stressed that in order to improve bilateral relations, the two sides should take into consideration four elements – political, economic, security and cultural aspects.

Besides cooperating on the security issue, India and Nepal should jointly exploit opportunities available to them in the areas of water resources, tourism and information technology, he said.

Addressing the workshop, Indian Ambassador to Nepal Shyam Saran underlined the need to transform and modernise connectivity between Nepal and India to improve relations.

"The infrastructure along the four major check-points between Nepal and India including Raxaul-Birgunj and Bhairahawa-Sunauli needs to be improved and modernised," he said.

Saran also proposed supplying oil to Nepal from India through a pipeline. "Instead of transporting oil through a tanker to Nepal, India is ready to supply it through a pipeline which will also minimise pilferage."

Stressing that Indian market has vast opportunities for Nepalese products, he said Kathmandu should "change its mentality" and regard it as an "India-Open not India-locked".

He also pointed out the need to connect Nepal with major Indian railway lines and offered the country's help in the matter.

Various papers were presented at the workshop on topics like emerging trade opportunities between India and Nepal, Indo-Nepal joint venture opportunities and challenges and Indo-Nepal cooperation on private sector perspective.

Presenting his paper, Indian journalist C Rajamohan said instead of playing the China card against India, Nepal should play a bridge between India and China, the two giant economies of the world, to attain its economic transformation.

Nepal should create conducive atmosphere for luring Indian investors in the Himalayan Kingdom, he stressed.

He also said that if SAARC (South Asian Association for Regional Cooperation) failed to move ahead in drafting and implementing South Asian Free Trade Agreement (SAFTA) Treaty Framework, India will move towards free trade area minus Pakistan.