Thursday, July 6 2006 10:01 Hrs (IST) - World Time -

Nathu La (Sikkim): History is all set to be made Thursday morning when Indian and Chinese traders cross either side of the border here along the Himalayas with the ancient Silk Road reopening for trade after 44-years.

Formal trading between the two countries is to begin at the 15,000-feet (4,545 metre) Nathu La Pass on the border between India's Sikkim state and China's Tibet region.

The reopening of the Nathu La Pass, 52 km (33 miles) east of Sikkim capital Gangtok would be the first direct trade link since a 1962 border war between the two countries.

"The reopening of border trade is seen an instrument for economic development for this region," Sikkim Chief Minister Pawan Kumar Chamling told sources.

Chinese ambassador to India Sun Yuxi told sources,"This is not just a symbolic trade, but we hope it would help to improve relations between the countries. Today the border is open for trade, and we hope the border will soon open for tourists and a bus service from Gangtok to Lhasa very soon. We are excited and feel really good."

Despite the sweeping rains, dense clouds and freezing temperature, the Himalayan pass echoed Thursday with Hindi film music, mainly film songs, and Chinese songs. The brass bands from both sides struck up some lilting tunes and the atmosphere was full of bonhomie with soldiers from both sides shaking hands and clicking pictures, though wielding their automatic weapons.

For the first time in 44-years since the bloody winter war between the two countries, this heavily guarded border separated by a barbed wire fence is looking relaxed with frontier guards on either side exchanging friendly gestures and pleasantries.

At around 9 a.m. (Indian Standard Time) a Chinese delegation led by C. Phuntso, chairman of the Tibet Autonomous Region, will cross over to the Indian side at Nathu La along with some 100 Tibetan traders.

"There will be handshakes, tea will be served to the visiting team and then a formal ribbon cutting ceremony would take place to mark the reopening of the Silk Road," the Sikkim chief minister said. A group of 100 Indian traders led by 80-year-old businessman Motilal Lakhotia would set foot on Chinese soil and make their way to the trade mart at Renqinggang located some 10 km from Nathu La.

"I am thrilled at the prospect of being part of history," said Lakhotia, a prosperous businessman in Gangtok.

Lakhotia had businesses in Lhasa before the 1962 war broke.

The Chinese ambassador to India Sun Yuxi is expected to cross over the border at Nathu La and go to Lhasa.

After the Indian traders cross the border, the Chinese traders would be brought to Sherathang, a small hamlet five km below the Nathu La Pass, where the main business hub is located for the Chinese to trade their commodities. The trade mart at Sherathang spread over eight acres have 29 pre-fabricated tin sheds to handle customs and immigrations, security posts, a telecommunication centre, a branch of the State Bank of India (US dollar is the currency to be used for trade), besides facilities for quarantine and power generation.

"The Chinese traders would probably not come to trade on the inaugural day as this is something symbolic," Sikkim's director of industries Saman Prasad Subba said.

Business would be duty-free with India able to export 29 items ranging from textiles and blankets, agricultural implements, liquor, cigarettes, tea, barley, rice, vegetable oil, and local herbs. Chinese traders would be able to trade in 15 items from horses to goats and sheep, yak tail, yak hair, goat skin, wool, and raw silk.

A study conducted by the Sikkim government says bilateral trade was expected to reach $12 billion by 2015.

"Trading would take place four days a week from Monday to Thursday between 7.30 a.m. (Indian Time) to 3.30 p.m. A total of 100 traders and 60 trucks carrying goods will be allowed to operate from either side of the border," Subba said.

As per modalities worked out between the two countries, normal trade would begin each year on June 1 and continue till Sep 30, as the area would become impassable after that due to heavy snow, freezing weather and high velocity winds.

"We are waiting impatiently to witness history and hope this trade brings in economic growth to the area," said Sonam Bhutia, a local trader hailing from a village close to Nathu La.

Nathu La was a major trading point between the two countries before the 1962 war. It was also one of the main arteries of the Silk Road, which historically linked China via Central Asia to Europe. Beijing had in 2003 given up its territorial claim over the Indian state of Sikkim.