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Thursday, 3 August, 2000, 14:40 GMT 15:40 UK
India, Nepal review treaty

India and Nepal have agreed to review a controversial fifty-year-old treaty which is viewed by many Nepalese as unequal and unjust.

The agreement came at talks in Delhi between senior officials of the two governments.

The treaty is mainly concerned with the employment and settlement rights of people living around the border, but its critics in Nepal says it gives political and economic advantages to India.

A BBC correspondent in Delhi says the outcome of the talks suggests that relations between the two countries are improving again after the hi-jacking incident last year when an Indian plane was seized on a flight from Kathmandu.

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