US embassy cable - 02KATHMANDU1616

UNCLAS KATHMANDU 001616 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ELAB, EAID, PGOV, AORC, NP, U.S-Nepali Relations 
SUBJECT: SIGNING OF NEPAL-ILO AGREEMENT ON US-FUNDED 
CHILD LABOR PROJECT 
 
 
1. Nepal and the ILO signed an agreement August 20 on 
the implementation of an ILO/IPEC time-bound project to 
eliminate the worst forms of child labor.  USDOL has 
funded the project with more than USD 5 Million.  DCM 
and LabOff attended the signing ceremony. 
 
2. Talks on the terms of the agreement had dragged on 
for more than nine months.  Finance Ministry officials 
attempted to insert a sentence into the agreement that 
would allow the Auditor General of Nepal to audit the 
project's accounts at any time.  The ILO objected, 
arguing that as a member state the GON would have to 
accept established UN audit procedures.  Post made 
repeated representations, pressing the Finance Ministry 
to expedite the negotiations.  In the end the GON 
dropped its demand that the objectionable provision be 
included. 
 
3. Post will continue to work with the ILO and Nepal's 
line ministries to ensure the successful implementation 
of DOL-funded initiatives. 
 
MALINOWSKI