Number: RL34731 Title: Nepal: Political Developments and Bilateral Relations with the United States Authors: Bruce Vaughn, Foreign Affairs, Defense, and Trade Division Abstract: Relations between the United States and Nepal have traditionally been friendly. U.S. policy objectives toward Nepal include supporting democratic institutions and economic liberalization, promoting peace and stability in South Asia, supporting Nepalese independence and territorial integrity, and alleviating poverty. American foreign policy in Nepal has sought to strengthen democracy and to prevent the collapse of Nepal which, should it become a failed state, could undermine regional stability. The United States had previously provided support in Nepal's struggle against the Maoists. U.S. policy towards the Maoists, who remain on two of three U.S. terrorist lists, appears to be dependant on the continued participation of the Maoists in the democratic process. Pages: 16 Date: October 23, 2008