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The CPN (Unified Socialist) has decided to allow Millennium Challenge Corporation (MCC) to table in the Parliament for discussions.

A Standing Committee meeting of the party held on Saturday made the decision to this effect, party spokesperson Jagannath Khatiwada said.

The party, however, said that some of the provisions of the MCC should be amended before endorsing it.

He opined that the MCC should be taken ahead only after forging consensus among the ruling coalition parties.

The meeting concluded that the coalition should not break down because of the MCC.

The United States said that it is a decision of the Nepali leaders whether to ratify the MCC compact for Nepal to make, as a sovereign democratic nation, and Nepal's decision alone.

Issuing a statement on Saturday, the US Embassy said that this year marks the 75th year of ties between Nepal and the United States.

"During these 75 years, Nepal has seen monumental changes. We have stood with Nepal through these changes and supported the country with development aid, disaster response and preparedness assistance, health and education programs, and more," the statement read.

This $500 million Millennium Challenge Corporation (MCC) grant is a gift from the American people and a partnership between our nations that will bring jobs and infrastructure to Nepal and improve the lives of Nepalis, the Embassy.

This project was requested by the Nepali government and the Nepali people and designed to transparently reduce poverty and grow the economy of Nepal, the statement further read.

Chinese Foreign Ministry Spokesperson Wang Wenbin said China opposes "coercive diplomacy," during a press conference on Friday, commenting on news that the US urged Nepal to endorse the Millennium Challenge Corporation (MCC) by February 28, Global Times reported.

China welcomes the international community to cooperate with Nepal, contribute to Nepal's economic development and livelihood improvement, but this should be done based on Nepalese people's willingness without political conditions, Wang said.

As a friendly neighbor and development partner to Nepal, China will continue to support Nepalese people to choose their own development path and support Nepal to make a decision that is in accordance with their country's interest and demonstrates people's willingness, Wang said, noting that China will continue to provide support to and help Nepal's development. 

According to Nepalese media, US Assistant Secretary Donald Lu recently held separate telephone conversations with Nepal's leaders, during which Lu urged them to endorse the MCC pact by February 28 or Washington would "review its ties with Nepal."

Media also reported that Lu further warned that the US "would consider China's interests behind Nepal's failure to ratify the compact.'' 

Nepal and the US signed the MCC agreement in 2017. The US said the deal is designed to improve the availability of electricity and increase road maintenance to advance connectivity, drive growth, and lay a strong foundation for new investment. But Nepal's Parliament has not ratified the compact. 

Nepal's political parties are sharply divided over the issue of whether to accept the US' grant assistance under the MCC agreement. Kathmandu and other cities of Nepal have frequently witnessed protests and rallies against the MCC deal. Critics of the pact in Nepal see it as undermining Nepal's sovereignty, integrity and constitutional autonomy.

Experts say that critics opposing the pact in Nepal have realized that it is a part of the US' Indo-Pacific military strategy. As Washington's Indo-Pacific Strategy clearly targets China, they do not want Nepal to get involved.

Experts noted that Nepal's Parliament has not ratified the compact not out of the so-called China's disinformation campaign, but Nepal's own domestic concerns. The US' criticism of China is totally groundless. The US has smeared China as an attempt to achieve its own geostrategic goals by sowing discord and creating a rift between China and Nepal. But China and Nepal's long-term friendly cooperative relationship won't be affected, which is the very thing that the US does not want to see. 

The United States, which has been piling pressure on the Nepal government to endorse the Millennium Challenge Corporation (MCC) at the earliest, said that it would not accept any form of violence in the name of protest.

US Ambassador to Nepal Randy W. Berry said that the United States would not accept activities to incite violence. He said so after the cadres of various political parties started staging demonstrations against the MCC in recent days.

Saying that the United States is a strong supporter of free speech and public discourse based in fact, including on MCC, he urged to express one’s views peacefully.

“We are a strong supporter of free speech & public discourse based in fact, including on MCC. The right to express one’s views is intrinsic to democracy, and people must be allowed to peacefully share their views,” he said.

The United States has set the government of Nepal a deadline of February 28 for the parliamentary ratification of the MCC.

Prime Minister and Nepali Congress President Sher Bahadur Deuba is in favour of endorsing the MCC at the earliest while CPN (Maoist Centre) and CPN (Unified Socialist) have been saying that the MCC could not be ratified in the existing form.

That’s why, the ruling coalition has been holding discussions every day to narrow down the differences.