Jack Straw came under fire last year over FO use of the peace fund
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Foreign Secretary Jack Straw is to use a British peace fund to provide Nepal with two military aircraft.
The Foreign Office says the aeroplanes, to be paid for by the Global Conflict Prevention Fund, are "non-lethal".
The move follows a row last year when the same fund was used to buy military helicopters to assist the Nepalese army to combat Maoist insurgents.
Parliament has not yet been informed of the decision, which was reported in the Nepalese national newspaper.
The UK Government was criticised by committees last year for "covert" use of the peace fund, which MPs called "a mistake".
Liberal Democrat foreign affairs spokesman Menzies Campbell told the Guardian: "Statements from Kathmandu are no substitute for informing parliament."
But a Foreign Office spokesman said: "We don't accept that the same mistake has been made."
He said Parliament would get a chance to approve the donation, adding: "The British Government is committed to supporting the Nepalese Government."
Maoist aggression
He said the aircraft were "suited to search and rescue missions", but accepted they could assist Nepalese military operations.
It is understood that the two aircraft are 9-seat transport and reconnaissance vertical-takeoff jets, suited for Nepal's mountainous terrain.
"It's not sufficient to concentrate on development issues," the Foreign Office spokesman said. "Maoist aggression is a problem in Nepal."
Nepalese security forces have been accused of human rights violations
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Jack Straw told MPs last year that Nepal's "Maoist terrorist groups ... are vicious beyond belief".
But the Nepalese security forces have also been widely criticised for human rights abuses.
Last October Denis MacShane told the House that there was "credible evidence of human rights violations" being carried out by the Nepalese military.
"Reports implicate the security forces in serious abuses such as illegal detentions, torture, disappearances, and summary executions," he said.
The Foreign Office accepted that human rights abuses take place, but said Britain was pressuring Nepalese security forces to reform.