The 75 years of US-Nepal diplomatic relations have had their share of ups and downs. The Americans were among Nepal’s first bilateral donors. Peace Corps volunteers, engaged in pursuits ranging from education to agriculture, helped Nepal modernize. The American role in helping Nepal maintain its ‘strategic autonomy’ vis-à-vis its two giant neighbors has been no less important over the years.

Yet there have also been times when the Americans have made things rather tricky for Kathmandu. For instance, the US-supported Khampa uprising in the 1960s had become a big headache for Kathmandu as it threatened to destroy Nepal-China ties. Throughout the Cold War, Nepal also had to maintain a delicate balance between the US and the USSR, the two superpowers. The Americans were also blamed for prolonging the Maoist insurgency (1996-2006) by arming the Nepal Army.

Now the bilateral relationship is again in focus thanks to the MCC compact. After its February 27 endorsement by the Nepali parliament, there has been a flurry of activity on the bilateral front, with the announcement of another lucrative USAID grant and a spate of high-level visits from America.

Anil Sigdel, founder of Nepal Matters for America, a Washington DC-based think tank, says the Americans want to “to ensure that Nepal aligns with US policy against Russia’s invasion of Ukraine”— more so as both India and China have refused to condemn Russia. They would also like to ensure the projects under the compact face no more obstacles and to keep China honest in Nepal.

Says Anna Richey-Allen, spokesperson at the US Embassy in Kathmandu, “Now more than ever, we [the two countries] will need to tackle difficult issues like… protecting democracy in the face of rising authoritarianism.”

With Washington now needing to lobby with Nepali leaders against Moscow it seems like Cold War redux in Kathmandu.   

Also read: China, Russia behind greater US engagement with Nepal