"Way back in 1950, India was able to secure, to quote Lawrence Ziring from The Subcontinent in World Politics, "a dominant influence in Nepal's internal politics and external relations." Influenced by the possible repercussions of the Chinese occupation of Tibet in 1950 and drawing on the British Indian-Nepalese Treaty of 1923, Pundit Nehru was able to persuade the Rana rulers of Khathmandu to sign two new treaties with India. These were:
. The Treaty of Peace and Friendship and
. The Treaty of Trade and Commerce.
Through these agreements, India managed to restrict Nepal's authority in defence matters and reduced its freedom to acquire arms and ammunitions from abroad. The agreements also practically made the borders open for the citizens of the two countries and laid down terms and conditions for trade and transit binding the landlocked smaller country to the prescribed procedures. Soon after New Delhi, which had been supporting a Nepali political group, operating from India, created conditions for the Rana rulers to be persuaded into forming a government tailored to suit the interest of New Delhi.
The puppet King Tribhuvan, who had taken refuge in India was installed on the Nepalese throne and provided effective sovereign status. Nepal virtually was reduced to a dependant client state with India "generously assisting and guiding Nepal in its various fields of activities" to quote Prof Krishna Jha of the Gorakhpur University.
Indian army was thrice called in between 1951-53 to maintain law and order, and Indian civil servants were inducted to run the administration. Indian army officers came to train and reorganise the armed forces and experts from the Indian Planning Commission and helped them prepare the economic plans. In Krishna Jha's words: "By and large prime ministers and even junior ministers were appointed in consultation with the India ambassador CPN Singh." India's writ ran also in matters relating to defence and foreign relations. China was kept at an arm's length and at Nepal's 'request', an Indian Military Mission was set up to run Nepal's northern check-post. Thus India was able to forge in real terms, a very 'special relationship' with Nepal.
In 1955, King Tribhuban passed away. His son Mahendra, taking an independent line, stopped the routine practice of consulting India in matters of state. His first act of liberation from the Indian stranglehold was to establish diplomatic relations with China. He also was quick enough to install a prime minister of his own choice, known for his opposition to 'special relationship' with India.
Mahendra was determined to pursue an unconstrained foreign policy. He adopted an approach of equal friendship with all countries and asserted the right of Nepal to accept economic and other assistance from abroad. He was particularly keen to cultivate relations with China to reduce to the minimum India's influence in Nepalese affairs. Indian teachers could no longer work in Nepalese schools without permission or without acquiring Nepalese citizenship. Restrictions were placed on the acquisition of immovable property of foreigners including the Indians. The King did not hesitate to disregard some of the provisions of the 1950 Treaty.
The India Military Mission, too, was sent back. India was obviously most unhappy at Mahendra's initiatives. In 1959, however, the pro-India Nepali Congress was able to win the general elections and Nehru's friend, BP Koirala became the Prime Minister. Koirala generally pursued the policies laid down by King Mahendra. He could accommodate Delhi only to the extent of not letting Nepal lean too much towards China. He was instrumental in meeting India's wishes for Nepal to sign the Gandhak Project.
King Mahendra, reacting to Delhi's patronising of radical Nepali elements, operating from across the border, by a royal proclamation took over the reins of the government directly in 1960, dismissing VP Koirala. He expressed his disapproval of Nehru's open criticism of his action. He went ahead to strengthen relations with China and Pakistan. He accepted the Chinese proposal to build the strategic Khathmandu-Kodari Road. He minced no words to accuse India of helping a rebel movement on its soil to overthrow him.
Even the armed conflict between India and China in 1962 was used by Mahendra to get an assurance that Delhi would take steps to stop Nepali exiles from operating there and also the acquiescence of India to the construction of the Khathmandu-Kudari road by the Chinese. The Indians were further persuaded to approve the extension of trade transit facilities to third countries through Indian land and sea-routes. By June 1969, KN Bista, the Nepalese Prime Minister could tell the press that the idea of special relationship with India was 'out of step' with various developments in Nepal's foreign relations.
The scenario underwent a change with the Indian victory in the 1971 Indo-Pakistan war. The King of Nepal visited India in 1973. The joint communique spoke about "the community of interests and identical approach of the two countries."
After Mahendra's demise, son King Brindra faithfully followed in his father's footsteps. He stuck to the policy of equi-distance between Nepal's two neighbours. He expressed keenness to achieve a mature, sober, and meaningful relationship with India. He put forward an ingenious proposal for the recognition of Nepal as a 'Zone of Peace' thus to gain New Delhi's acceptance of Nepal's neutral status. India, however, opted not to oblige Nepal and ignored the move.
There are various ways in which India puts pressure on Nepal. A major instrument is delay or refusal to agree to renew the Trade and Transit arrangements. Every few years the treaty has to be renewed. The cessation of the flow of goods creates serious difficulties for the Nepalese government and the citizens. It was through a prolonged economic blockade of this kind that India was able to effect wide spread agitations in Khathmandu which led to the relegation of the King to a constitutional monarchy and reintroduction of democracy. The political instability thus created has been intelligently exploited by India."